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.
What is a YES BANK scam case:
The case relates to mis-selling of the bank’s AT1 (Additional Tier-1) bonds to retail investors by the bank’s officials. It was alleged that the bank and certain officials did not inform investors of the risk involved while selling the AT-1 bonds in the secondary market. The sale of AT1 bonds started in 2016 and continued till 2019.
In its order, Sebi stated that Kapoor was overseeing the entire operation relating to the secondary sale of AT-1 bonds, taking regular updates from the team and giving them further instructions to increase the sales, thus creating pressure on the officials to ramp up the sales.
Sebi said that Kapoor was responsible for acts of misrepresentation or suppression of material facts, manipulation, and mis-spelling of AT-1 bonds of Yes Bank to individual investors.
Also, Kapoor pressured officials of the private wealth management team to devise a devious scheme to dump the AT-1 bonds on Yes Bank customers.case was pertaining to irregularities worth ₹900 crore in a loan given to