ED probes Rana Kapoor's role in YES Bank's Rs 30,000-cr bad loans

The special court under the Prevention of Money Laundering Act granted an extension to keep Rana Kapoor under custody till March 16

The exceptional court under the Prevention of Money Laundering Act (PMLA) allowed an expansion to the Enforcement Directorate (ED) to keep Rana Kapoor under care till March 16. The ED had looked for expansion of Kapoor’s authority to test his job in YES Bank’s terrible obligations of Rs 30,000 crore. It will likewise investigate whether the monies were “siphoned and washed” to the 78 substances constrained by the bank’s fellow benefactor.

“It has been seen that more than Rs 30,000 crore was given as advances by YES Bank to a few organizations/elements during the residency of Kapoor in YES Bank which have changed over into terrible obligations. Kapoor is required to be grilled to learn if, in the pretense of these credits, the monies have been siphoned and washed,” the ED said in its remand application to court.

The ED included that it was examining credits of over Rs 20,000 crore from the perspective of inconsistencies, renumeration and preoccupation. Examination has uncovered that around 78 organizations claimed by Kapoor’s relatives were being controlled and overseen by Kapoor. The ED stated, “Records identified with these organizations/firms are to be acquired,” and included that Kapoor would be gone up against to discover redirecting of assets from YES Bank to these organizations. The ED named Kapoor, his significant other Bindu and three little girls — Roshini, Radha and Raakhe — as denounced in the issue.

YES Bank share sale: Erwin Singh Braich, family offices may not be included

Bank plans to raise $1.75 billion; in talks with five European institutions: Ravneet Gill

YES Bank is likely to skip issuing shares to family offices in favour of institutional investors in the current round of its preferential issue, where the bank plans to raise $1.75 billion, its managing director and chief executive officer, Ravneet Gill, has said.

This means Erwin Singh Braich, GMR Group, and Aditya Birla Family Office, which had all put in bids, may not get a piece in the bank’s stake sale. Denying reports of a forced merger being thrust upon the bank, he said he was confident of raising the target funds soon.

“Large European financial institutions regulated by the Financial Conduct Authority have shown an interest in the bank,” Gill told Business Standard in an interview. “Since the talks are at an advanced stage, the bank will reveal the names of these investors once it enters into a binding agreement with them,” he added. It is understood that YES Bank has received an interest from four to five financial institutions, and one of them could take as much as 10 per cent in the bank. Others are expected to pick up a 4-5 per cent stake each.

Gill said that since these investors are well-governed and established names, they should pass the ‘fit and proper’ test of the Reserve Bank of India. “When these bids become binding and once we disclose the names, then nobody would have any concerns with regard to the quality of investors or their ability to put in the money. So, it will effectively put a lid on the issue once and for all,” Gill said.

Braich had bid for $1.2 billion in the proposed $2-billion stake sale, while the Citax group evinced interest to the tune of $500 million. Other family offices were to put in about $100 million, according to a YES Bank release. Gill said, “As far as Indian investors and family offices are concerned, we have told them that for this capital raise, we have to go for the institutional route.”