The Bombay High Court has once again refused to grant bail to Yes Bank founder Rana Kapoor. The court took the decision while hearing the money laundering case involving Kapil Wadhawan, director of Dewan Housing Finance Corporation Limited (DHFL). Rana Kapoor’s earlier bail plea was rejected by the High Court on January 25, 2021.
Justice PD Naik’s bench said, ‘Though Kapoor has been in custody for three years, the involvement of public money shows that the allegation is serious. There is a possibility of tampering of evidence.’ The same bench had rejected Kapoor’s first bail application saying that the huge loss of public money allegedly caused by the criminal activities of his companies needed to be taken seriously.
A single bench of Justice PD Naik said in its order that Rana Kapoor misused his official position to extend benefits to his family members and associates. He is accused of involvement in bribery, corruption and money laundering activities. Through this, a fraud of about Rs 5,333 crore was done. There are also allegations that around Rs 378 crore was invested in foreign countries as well. Its investigation is still going on. As per the information, the case against Kapoor was first registered by the CBI in 2020. He was arrested on March 8, 2020, in connection with a money laundering case registered by the Enforcement Directorate (ED).
In 2018, Yes Bank reportedly invested ₹3,700 crore in short-term debentures of DHFL. It also gave a loan of ₹750 crore to a subsidiary of DHFL. Kapoor has allegedly received a bribe of ₹600 crore by giving a loan to DOIT Urban Ventures (India) Pvt. Kapoor filed a second bail application on the ground that he had been imprisoned for a period in excess of the prescribed minimum sentence. The maximum sentence for the charges against Kapoor is seven years, while the minimum sentence for a conviction is three years. Kapoor sought bail on the ground that he has been in custody since March 2020, and it will take a long time before the trial of the case begins. In such a situation, there is no need for his custody now.
“Kapoor is one of the main accused in the complaint. He has abused his official position to obtain undue financial advantage for himself and his family members and associates. He is involved in bribery, corruption and money laundering activities. Offenses Proceedings of Account (POC) in this case involving an amount of Rs 5,333 crore. It is alleged that Kapoor siphoned off a large amount of POC outside India through companies owned/controlled by his family group.600 crores of crime, Rs 378 crores have been invested abroad. The exact level of proceeds of crime relating to investments is still under investigation,” Justice Naik said. The bench further said, “Looking at the gravity of the offense and the crime, Kapoor cannot be granted bail. The court said that there is a possibility of tampering with the evidence in the case. Therefore, bail cannot be granted to Rana Kapoor.”