- The Supreme Court refused to grant interim bail to Yes Bank Founder Rana Kapoor in connection with a ₹600 crore money laundering case against him.
- Justice Khanna remarked, ” he rocked the entire financial system.”
- The Bench asked the Additional Solicitor General to ensure that the trial is sped up.
- Kapoor was arrested on March 8, 2020, in connection with a ₹600 crore money laundering case registered by the ED.
- The High Court had observed that the proceeds of crime involved in the case was ₹5,333 crore.
- Yes Bank allegedly invested ₹3,700 crore in short-term debentures of DHFL. It also sanctioned a loan of ₹750 crore to a subsidiary of DHFL.
- Kapoor has been in jail since March 2020 in connection with the DHFL money laundering case.
The Supreme Court refused to grant interim bail to Yes Bank Founder Rana Kapoor in connection with a ₹600 crore money laundering case against him. “He rocked the entire financial system”- the Supreme Court says while rejecting the bail plea.
A Bench of Justices Sanjiv Khanna and SVN Bhatti asked Kapoor, who eventually withdrew the petition, to file a fresh bail plea once he spends half his normal sentence as an undertrial.
The top court was hearing the bail application filed by Kapoor in connection with a ₹600 crore money laundering case involving Kapil Wadhawan, director of the Dewan Housing Finance Corporation Ltd (DHFL). The Bombay High Court had in May rejected the second petition moved by Rana in this regard, leading to the present appeal.
The High Court had observed that the proceeds of crime involved in the case was ₹5,333 crore.
The same single-judge had rejected Kapoor’s first bail application in February 2021, observing that the huge loss of public funds, allegedly on account of the criminal activities of his companies, is required to be viewed seriously.
At today’s hearing before the apex court, Senior Counsel Abhishek Manu Singhvi, appearing for Kapoor, said personal liberty was key in this case, given Kapoor’s long incarceration (since March 2020).
Justice Khanna remarked, “Normally we consider based on the period already undergone Mr. Singhvi, but here he rocked the entire financial system. Did not Yes Bank go into difficulty?” The Bench asked Additional Solicitor General SV Raju, representing the Enforcement Directorate (ED), to ensure that the trial is sped up.
“Some cases are extraordinary. You have to take it on a priority basis. What is this delay? There is something wrong. You cannot take it up like this. And the thing is once they get bail, the trial will not end in at least 10 years.”
In its order, the Bench noted that Kapoor was withdrawing the plea with the liberty to file an application under Section 436A of the Criminal Procedure Code.
Kapoor was arrested on March 8, 2020, in connection with a ₹600 crore money laundering case registered by the ED. It was alleged that entered into criminal conspiracies with Wadhawan for a substantial undue benefit through companies held by his family members.
In 2018, Yes Bank allegedly invested ₹3,700 crore in short-term debentures of DHFL. It also sanctioned a loan of ₹750 crore to a subsidiary of DHFL. Kapoor allegedly received kickbacks of ₹600 crores by extending a loan to DOIT Urban Ventures (India), which is wholly owned by RAB Enterprises, a company owned by his wife and daughters.
Rana Kapoor has been in jail since March 2020 in connection with the DHFL money laundering case.
The case relates to mis-selling of the bank’s AT1 (Additional Tier-1) bonds to retail investors by the bank’s officials. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 bonds in the secondary market. The sale of AT1 bonds started in 2016 and continued till 2019.
(With inputs from agencies)
