Rana Kapoor, the founder of YES Bank, had his bail plea rejected by the Supreme Court in connection with a money laundering case involving the Rs 3,642-crore YES Bank scam. The court raised concerns about the prolonged investigation by the Enforcement Directorate (ED).
Questions Over ED’s Delay
The apex court questioned why the Enforcement Directorate is taking so long to investigate the YES Bank scam, which had a significant impact on the banking system. The case led to difficulties for YES Bank, with the Reserve Bank of India stepping in to protect investors.
Lengthy Incarceration and Complicated Investigation
Rana Kapoor has been in prison since March 2020, and his lawyer argued that the extended detention without bail was unjust. The Additional Solicitor General explained that the investigation involves hundreds of shell companies and obtaining information from foreign countries, contributing to the delay.
Never-ending Probe and Overburdened PMLA Court
The Supreme Court expressed concern about the potential for the trial to never end once bail is granted. Rana Kapoor’s lawyer emphasized that there was no loss of public funds and that Kapoor had demitted office in 2019. Ultimately, the Supreme Court rejected the bail plea, leading Kapoor to withdraw it.
DHFL Money Laundering Case Background
The case centers around the mis-selling of YES Bank’s AT1 (Additional Tier-1) bonds to retail investors by the bank’s officials. Allegations claim that investors were not adequately informed of the risks involved in selling these bonds in the secondary market. The sale of AT1 bonds began in 2016 and continued until 2019.
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