Money & Banking

Yes Bank scam: CBI books Rana Kapoor and kin

Our Bureau New Delhi | Updated on March 09, 2020 Published on March 09, 2020

Links them to Yes Bank-DHFL ₹ 1,350 crore fund diversion; charges Kapoors and Wadhawans with corruption, cheating, bribery and criminal misconduct

The Central Bureau of Investigation (CBI) has booked former Yes Bank top boss Rana Kapoor, his immediate kin, and Kapil Wadhwan, Promoter Director of Dewan Housing Finance Corporation Limited, charging them with corruption and fund diversion.

The CBI FIR names Kapoor, his wife Bindu Rana Kapoor and their daughters Roshini Kapoor, Raakhe Kapoor Tandon as well as Radha Kapoor Khanna. The CBI alleges that Rana Kapoor and Kapil Wadhawan entered into a criminal conspiracy for extending financial assistance to DHFL by Yes Bank Limited.

The Kapoors gained substantial undue benefit through the companies held by them by this partnership, the CBI said.

DHFL, DOIT Urban Ventures (lndia) Private Limited, RAB Enterprises (lndia) Private Limited, Morgan Credits Private Limited, RKW Developers Private Limited have been listed as accused in the FIR.

Dheeraj Rajesh Kumar Wadhawan, the Director of RKW Developers Private Limited has also been listed as an accused by the CBI.

Kapoor’s daughters Raakhe, Radha and Roshini are Directors of Morgan Credits. Radha and Roshini are also the Directors of DOIT Urban Ventures. Kapoor’s wife, Bindu is the former Director of RAB Enterprises.

CBI has conducted searches across seven locations in Mumbai in connection with this case on Monday.

According to the CBI, Yes Bank invested ₹ 3700 crore in the short term debentures of DHFL from April to June 2018. “Simultaneously, Kapil Wadhawan paid a kickback of ₹ 600 crores to Rana Kapoor and his family members in the garb of builder loan of ₹ 600 crores given by DHFL (in which Wadhawan is a promoter director) to DOIT Urban Ventures (lndia), a wholly owned subsidiary of RAB Enterprises (lndia) in which Bindu Kapoor, wife of Rana Kapoor is a director and 100 per cent shareholder.”

“In addition to the above, Yes Bank also sanctioned a loan of ₹ 750 crore to RKW Developers Private Limited (which has Dheeraj Rajesh Kumar Wadhawan as a Director), which is a DHFL group company for their Bandra Reclamation Project, Mumbai,” the CBI alleged.

“This whole amount was siphoned off by Kapil Wadhawan since the entire amount was transferred by RKW Developers to DHFL without making investment in Bandra Reclamation Project for which the loan was sanctioned,” the CBI said.

The CBI has booked the Kapoors, Wadhawans and their companies under sections 120-B read with 420 of IPC and Section 7, 12 & 13 (2) read with 13 (1) (d) of Prevention of Corruption Act, 1988.

Published on March 09, 2020

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.