Special ED court extends Yes Bank founder Rana Kapoor's custody till March 20

Days after Yes Bank founder Rana Kapoor was arrested by the Enforcement Directorate (ED), Mumbai's Special Court on Monday (March 16, 2020)  ordered the extension of his custody till March 20. This is the second time the court has extended Kapoor's custody for questioning in connection with several allegations of financial misconduct against him

Earlier on March 11, the court had ordered Rana Kapoor's custody till March 16.  Kapoor was arrested by the ED on Sunday (March 8, 2020) after hours-long interrogation and was remanded to the agency's custody till March 11 by a PMLA court.

The ED, as well as the CBI, have registered separate cases against Rana Kapoor, his wife, their three daughters - Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor - and Dewan Housing Finance Ltd (DHFL) promoter Kapil Wadhwan for hatching a criminal conspiracy from April to June 2018 between for extending financial assistance to DHFL by Yes Bank Ltd. 

It is alleged that the Kapoors were paid kickbacks of Rs 600 crore for extending financial assistance to DHFL by Yes Bank Ltd. 

Meanwhile, on March 14, current administrator Prashant Kumar was appointed as the new managing director, CEO of crisis-ridden Yes Bank by the government.  Former Chairman of PNB will be the Non-Executive Chairman while Mahesh Krishnamurthy and Atul Bheda will be the two independent directors. 

The Reserve Bank of India (RBI) has unveiled a bailout plan for Yes Bank, under which SBI will invest up to Rs 10,000 crore in the troubled bank. Last week, the Reserve Bank of India (RBI) superseded Yes Bank`s board to take control and also capped withdrawals from its accounts. 

The government also lifted the moratorium imposed on Yes Bank after it failed to raise the capital it needed to stay above the mandated regulatory requirements.

Yes Bank, was placed under a moratorium after it failed to raise the capital it needed to stay above the mandated regulatory requirements.