Money & Banking

SEBI orders attachment of Rana Kapoor’s assets to recover ₹1-cr dues

Our Bureau Mumbai | Updated on March 25, 2021

YES Bank founder was penalised for not making disclosures about a transaction of Morgan Credit, an unlisted promoter entity of YES Bank; Kapoor had created an opaque layer between him and stakeholders, violating LODR provisions

To recover its pending dues from YES Bank founder Rana Kapoor, market regulator SEBI has directed the attachment of his assets.

SEBI had imposed a fine of ₹1 crore on Kapoor in September 2020 and he has failed to pay it. The fine was levied on Kapoor for not making disclosures regarding a transaction of Morgan Credit, which was an unlisted promoter entity of YES Bank. Kapoor had created an opaque layer between him and stakeholders and violated the provision of the LODR (Listing Obligations and Dislcosure Requirements) Regulation, Securities and Exchange Board of India had said in the order.

Also read: SEBI seeks ‘discretion’ in prosecutions

SEBI had sent a demand notice to Kapoor in February this year but he did not clear the dues. The pending dues, totalling ₹1.04 crore, include an initial fine of ₹1 crore, interest of ₹4.56 lakh and recovery cost of ₹1,000, the attachment notice says. SEBI has asked banks, depositories and mutual funds not to allow any debit from the accounts of Kapoor. However, credits have been permitted. Also, the regulator has directed the banks to attach all accounts, including lockers, held by the defaulter.

The Enforcement Directorate (ED) had arrested Kapoor in a fresh money-laundering case linked to an alleged ₹4,300-crore fraud at the Punjab and Maharashtra Cooperative (PMC) Bank in Maharashtra. Kapoor has already been in judicial custody after he was arrested by the central probe agency in March last year in connection with alleged financial irregularities and purported kickbacks paid to him and his family members in lieu of certain loans provided by YES Bank to a number of high-profile borrowers.

Published on March 25, 2021

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