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Yes Bank crisis: CBI searches 7 locations; Rana Kapoor's family booked

Yes Bank crisis: CBI searches 7 locations; Rana Kapoors family booked

A day after CBI registered an FIR against Yes Bank co-founder and promoter Rana Kapoor under charges of alleged criminal conspiracy and corruption, the investigating agency carried out searches at seven locations in connection with the alleged Yes Bank scam case.

CBI sleuths carried out operations at the residence and official premises of Kapoor in Mumbai. Kapoor is alleged to have received kickbacks through a Rs 600-crore loan from a non-banking financial company (NBFC), which is an associate company of Dewan Housing Finance Limited (DHFL), to DoIT Urban Ventures (India) Private Ltd, a company owned by Kapoor's family, at a time when Yes Bank had loan exposure of Rs 3,700 crore to DHFL. Rana Kapoor was the MD and CEO of Yes Bank till January 2019.

On March 5, the Reserve Bank of India (RBI) imposed a moratorium on the bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect. The central bank also superseded the board of directors of troubled Yes Bank for a period of 30 days "owing to serious deterioration in the financial position" of the bank. and has appointed former deputy managing director and CFO of SBI Prashant Kumar.

During this period, the bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment.

Yes Bank was struggling to get capital infusion and saw a decline in total deposits by six per cent to Rs 2.09 lakh crore. As on March 31, 2019, the deposits of top 20 depositors aggregated to Rs 24,673 crore, representing 10.84 per cent of the total deposit base.

RBI Governor Shaktikanta Das has assured Yes Bank customers of "swift" action and a scheme "very shortly". "The resolution (to Yes Bank) will be done very swiftly, it will be done very fast… 30 days which we have given is the outer limit. You will see very swift action from RBI," Das said.

Yes Bank crisis: What you can do if you are a depositor or investor

As part of its reconstruction scheme, the SBI on March 7 announced it will pick up a 49 per cent stake in Yes Bank for Rs 2,450 crore and clarified that all the deposits and liabilities of the reconstructed bank will continue in the "same manner".

The RBI has also announced its decision to permanently write down the Additional Tier 1 (AT1) capital raised by Yes Bank. This puts the entire Rs 10,800 crore worth of AT1 at risk, which includes mutual funds and pension funds of depositors.

Rana Kapoor's wife, three daughters booked by CBI

In its FIR, the CBI has named five companies, seven individuals, including Kapoor's wife and three daughters, and unidentified people. Besides Rana Kapoor, the agency has booked his wife Bindu, daughters Roshini, Raakhe and Radha. Kapil Wadhawan, promoter of Dewan Housing Finance Corporation Limited (DHFL) and Dheeraj Rajesh Kumar Wadhawan, Director of RKW Developers Private Limited, a company linked to DHFL have also been named as accused, PTI reported.

Companies DHFL, RKW Developers Private Limited, DoIt Urban Ventures controlled by the Kapoor family, RAB Enterprises (lndia) Private Limited in which Bindu Rana Kapoor was director and Morgan Credits Private Ltd in which Rana Kapoor's daughters were directors are also named as accused.

(Inputs and image from hindustantimes.com)

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