SC denies bail to Yes Bank founder Rana Kapoor

Supreme Court on Friday refused to entertain bail plea of Yes Bank founder Rana Kapoor in a money-laundering case against him. The apex court noted that this case rocked the entire financial system.

Last month, market regulator Sebi sent a notice to Kapoor, asking him to pay ₹2.22 crore in a case of mis-selling the private sector lender’s AT1 bonds.

In the event of non-payment of dues within 15 days (that is by 8 August), Sebi warned it will recover the amount by attaching and selling his moveable and immovable property.

Kapoor has been in jail since March 2020 in connection with the DHFL money laundering case. Kapoor was first arrested in 2020 in a case pertaining to irregularities worth ₹900 crore in a loans sanctioned to Housing Development and Infrastructure Limited (HDIL) promoters Rakesh Wadhawan and his son Sarang. Later he was charged in several other cases related to money laundering.

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YES BANK founder Rana Kapoor scam case:

The case pertains to the mis-selling of Yes Bank’s AT1 bonds to retail investors by the bank’s officials. Allegedly, the bank and certain officials failed to disclose the risks involved while selling these bonds in the secondary market from 2016 to 2019.

According to Sebi’s order, Rana Kapoor, the bank’s founder, was closely supervising the entire process of the secondary sale of AT1 bonds. He regularly monitored the team’s progress and instructed them to increase sales, creating pressure on officials to boost sales.

Sebi held Kapoor accountable for acts of misrepresentation, suppression of material facts, manipulation, and mis-selling of Yes Bank’s AT1 bonds to individual investors.

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