YES Bank scam: Bombay High Court rejects bail plea of Rana Kapoor again

The Bombay High Court today rejected the second bail application filed by Yes Bank founder Rana Kapoor in a ₹600 crore money laundering case involving Kapil Wadhawan, director of Dewan Housing Finance Corporation Ltd (DHFL). (Rana Kapoor v. Enforcement Directorate),.Single-judge Justice PD Naik pronounced the order today.He observed that the proceeds of crime involved in the case is ₹5,333 crores. "Though the applicant is in custody for three years, the involvement of public money shows that charge is serious. There is apprehension of tampering evidence" the bench held. .The same 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..Kapoor was arrested on March 8, 2020 in connection with a ₹600 crore money laundering case registered by the Enforcement Directorate (ED) by entering into criminal conspiracies with Wadhawan for a substantial undue benefit to Kapoor through companies held by his family members.In 2018, Yes Bank allegedly invested ₹3,700 crores in short term debentures of DHFL. It also sanctioned a loan of ₹750 crores to a subsidiary of DHFL.Kapoor allegedly received kickbacks of ₹600 crores by extending a loan to DOIT Urban Ventures (India) Pvt. Ltd. which is wholly owned by RAB Enterprises, a company owned by Kapoor's wife and daughters..His first bail application was rejected in February 2021. Kapoor filed the second bail application on the ground that the maximum sentence under the Prevention of Money Laundering Act (PMLA) was 7 years, and Kapoor had been in custody for 3 years since March 8, 2020.Senior Advocate Abad Ponda appearing for Kapoor contended that the trial was not going to commence anytime in the near future..Advocate Hiten Venegaonkar argued that the agency was ready with its draft charges against Kapoor. He argued that it would submit the same before the trial court, and the trial court could commence framing of charges. .The court recorded in its order that Kapoor siphoned off huge amount of POC out of India through his family group owned/controlled companies."Out of proceeds of crime of ₹600 crores, ₹378 crores have been invested overseas. Investment relating to exact layering of proceeds of crime is still under investigation. Considering the role of applicant in the crime, the magnitude and seriousness of crime, the applicant is not entitled for bail" the Court concluded. .[Read order]