PMLA court extends Rana Kapoor's police custody till March 16

A Special Prevention of Money Laundering (PMLA) court today extended YES Bank Co-founder Rana Kapoor's police custody till March 11. The Enforcement Directorate had sought the extension of the custody for further questioning.

The investigative body has widened the ambit of its probe beyond the loan given to DHFL, the investigative agencies are likely to question former directors of the Yes Bank, including its former chairman Ashok Chawla. Over the days, the investigators zeroed in on Kapoor’s foreign assets in the UK, France and the US to see if the proceeds of money laundering had been used to purchase these assets by the banker and his family.

Rana Kapoor was arrested early on Sunday by the Enforcement Directorate and remanded to the agency’s custody till March 11, even as the Central Bureau of Investigation began a probe and lodged a First Information Report (FIR).


Kapoor's arrest came after the Reserve Bank of India imposed a moratorium on withdrawals from the bank on March 5, citing governance issues, weak regulatory compliance, wrong asset classification and risky credit decisions.

The RBI superseded the bank’s board and capped withdrawals at Rs 50,000 per depositor. On March 6, the central bank had also proposed a draft scheme of reconstruction of the bank under which State Bank of India has expressed its willingness to invest in the lender.