Money & Banking

Not responsible for the bank’s downfall, says Rana Kapoor

Surabhi Mumbai | Updated on March 11, 2020 Published on March 11, 2020

“I cannot be held responsible if the present management has been unable to perform,” Rana Kapoor told a PMLA court on Wednesday after the Enforcement Directorate sought his custody till March 16.

On the charge of kickbacks received from DHFL for investments in the housing finance company (HFC), Kapoor said the loans were taken prior to the investments in DHFL. Kapoor, who was present in the court, was represented through his counsel, Sushil Maneshinde.

Three loans were taken by Kapoor’s family companies between February 2017 and May 2018 – two of ₹300 crore each and then another of ₹600 crore to repay the earlier two loans – while the NCDs of DHFL where ₹3,700 crore was invested by YES Bank was open between May 22 and June 4, 2018. As much as ₹130 crore was also repaid as interest amount for the loan, Kapoor’s counsel informed the court, adding that no bribe taker will take the amount in cheque and that no fool will return the interest amount. The full loan has to be paid by 2023.

Security for loan

He also contended that his daughters had given security for the loan and have assets to pay back double the loan amount.

He also stressed that he had filed statements for each of the 78 companies under investigation that are being alleged to be dummy companies and listed out transactions for each of them.

Kapoor also contended that the properties that are being investigated were purchased in public auctions and not through underhand deals as was being alleged. Other properties were purchased from loans taken from other organisations, he further said.

Meanwhile, Reliance Group, in a statement, said it has nil direct or indirect exposure to any of the entities controlled by Kapoor or his family.

“Reliance Group says its entire exposure to YES Bank is fully secured and transacted in the ordinary course of business,” it said.

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Published on March 11, 2020
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