Court sends former Yes Bank CEO Rana Kapoor to ED custody till March 11

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Mumbai's Special Holiday Court on Sunday (March 8, 2020) sent Yes Bank founder Rana Kapoor to Enforcement Directorate custody till March 11. Rana Kapoor was arrested in the wee hours of Sunday after 31 hours of interrogation by the ED.

Earlier on Saturday (March 7, 2020) Rana Kapoor was taken to the ED office for questioning under the Prevention of Money Laundering Act (PMLA). Kapoor's wife was also called in the Enforcement Directorate office on Sunday for interrogation.

The agency also conducted raids at Kapoor's residence located in the upscale 'Samudra Mahal' complex in the Worli area, Mumbai. The case against Kapoor is linked to the scam-hit DHFL as the loans lent by the bank to the company allegedly turned non-performing assets (NPAs), said ED.

Meanwhile, in a major relief to Yes Bank customer, the crisis-hit bank on Saturday tweeted that its customers that they can now withdraw money from both at Yes Bank and other bank ATMs using their debit cards. The bank also thanked its customers for showing patience.

On Thursday (March 5, 2020), the RBI said a moratorium has been imposed on Yes Bank, stressing that the bank`s financial capability has undergone a steady decline largely due to the inability of the bank to raise capital.

As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan and SBI will submit its final report to RBI on Monday.