This Article is From Mar 11, 2020

Loans Worth Rs 20,000 Crore Sanctioned By Rana Kapoor Turned NPA, Says Enforcement Directorate

A PMLA court in Mumbai extended Rana Kapoor's ED custody till 16 March.

Loans Worth Rs 20,000 Crore Sanctioned By Rana Kapoor Turned NPA, Says Enforcement Directorate

Loans worth Rs 20,000 crore out of Rs 30,000 crore sanctioned by Rana Kapoor, during his tenure as chief of the crisis-ridden Yes Bank, turned into bad debts, the Enforcement Directorate (ED) told a special court on Wednesday. According to news agency PTI, the submission was made by ED to a Prevention of Money Laundering Act (PMLA) court in Mumbai which extended Kapoor's custody till 16 March, after the agency sought remand for further probe.

Kapoor, who was arrested by the ED on Sunday, is facing probe from the ED and the CBI over allegations  that he received kickbacks through scam-hit Dewan Housing Finance Corporation Limited's (DHFL) Rs 600 crore loan to a family-owned company. Kapoor's wife and three daughters are also among the 13 accused named by the CBI in the case.

As many as 44 companies belonging to 10 large business groups reportedly accounted for bad loans of Rs 34,000 crore of Yes Bank, PTI reported, adding that nine firms of Anil Ambani-led Reliance Group reportedly owed Rs 12,800 crore while Essel Group had unpaid loans of Rs 8,400 crore.

Last week, Yes Bank was placed under a moratorium by the Reserve Bank of India (RBI), which took control of the board and also imposed a Rs 50,000-limit on withdrawals from the bank, after the central bank cited "serious deterioration in the financial position of the Bank".

Since then, the country's largest lender State Bank of India (SBI) has shown interest in buying upto 49 per cent stake in the belaguered private lender, as a part of its restructuring plan. Speaking to NDTV, SBI chairman Rajnish Kumar also said that the moratorium could be lifted this week.