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ED Arrests Kapil And Dheeraj Wadhawan In Yes Bank Money Laundering Case

CineBuster Online | Updated — Fri, 15 May 2020 08:16:06 +0000

Mumbai: Dewan Housing Finance Limited (DHFL) promoters, Kapil and his brother Dheeraj Wadhawan, were arrested on Thursday in connection with a money laundering case of Yes Bank being probed by the Enforcement Directorate (ED).

The duo was produced before a special Prevention of Money Laundering Act (PMLA) court, which remanded them to ED’s custody till May 24.

A single-judge bench Bombay high court (HC), comprising Justice Bharati Dangre, on Tuesday had rejected the Wadhawans’ anticipatory bail plea and said that custodial interrogation was needed because of the serious nature of allegations such as money laundering and the accused had entered into a conspiracy with several others, including Yes Bank promoter Rana Kapoor and his family members.

The judge said that only the applicants can shed light on the nature of the transactions and the alleged conspiracy could be cracked after their interrogation.

ED had initiated proceedings against the Wadhawans based on a first information report (FIR) registered by the Central Bureau of Investigation (CBI) on March 7 against Kapoor for conspiracy, cheating and under relevant provisions of the Prevention of Corruption Act.

It is alleged that between April and June 2018, Yes Bank invested Rs 3,700 crore in short-term, non-convertible debentures of DHFL and Kapoor received Rs 600 crore as kickbacks from DHFL, in the form of loan advanced to two firms, DOIT Urban Ventures (India) Private Limited and Morgan Credits Private Limited.

While Kapoor’s daughters hold 100℅ stakes in DOIT, Morgan Credits is controlled by his wife.

ED also alleged that the Wadhawans had formed at least 79 companies to siphon off money.

Additional solicitor general Anil Singh, appearing on behalf of ED, opposed the pleas and stated that the debentures were not yet redeemed by DHFL and Yes Bank had not received its amount back.

He added that DHFL has extended a loan of Rs 600 crore to the firms controlled by Kapoor’s family by showing grossly overvalued properties.

ED officials said that it had served the summons to the Wadhawans to cooperate with them and to appear before the last week of March, but they did not cooperate. The agency also said that the claims of lockdown restrictions do not hold because if they could travel to Mahabaleshwar, they could have visited the ED office as well.

The Wadhawans, along with a group of 23 people, had flouted the prevailing lockdown restrictions and travelled to Mahabaleshwar from Khandala on April 8. The family had managed to leave Mumbai on the permission letter issued by senior state government officials, which is under investigation.

The post ED Arrests Kapil And Dheeraj Wadhawan In Yes Bank Money Laundering Case first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

Since Modi Government Came To Power Banks Wrote Off Rs 6,60,000 Crore Worth Bad Loans As Per RBI Data

CineBuster Online | Updated — Sun, 15 Mar 2020 15:38:56 +0000

New Delhi: Banks operating in India have written off bad loans worth Rs 660 thousand crore since 2014, as per RBI data studied by CineBuster. The quantum of loans that were written off amounts to half of the total non-performing assets or bad loans that were recorded in the financial books of the banks.

Data published by Reserve Bank of India (RBI) also shows that as much as Rs. 237 thousand crore was written off from the financial books of the banks in financial year 2018-19 alone.

The graph shown below charts the steep rise in the amount being written off, often referred by banks as technical write-offs, allowing them to clean up their books, as the banks fail to recover the loans.

According to the RBI data, NPAs or bad loans on the financial books of banks have also seen a steep rise ever since 2014 – also the year the Bharatiya Janata Party-led government came to power at the Centre.

The total NPAs in 2013-14 amounted Rs. 205 thousand crore, which rose to a whopping Rs 1,173 thousand crore in 2018-2019. This steep rise in NPAs is shocking, especially under the watch of party that promised in its 2014 election manifesto that it would “take necessary steps to reduce NPAs in banking sector.”

Zooming Bank Fraud Cases

During the same period, the cases of bank frauds also saw a steep rise. Cases of frauds of more than Rs 1 lakh stood at 4,306 in 2012-13, and rose to 6,801 in 2018-19.

Money Sunk in Bank Fraud Cases

As the number of bank fraud cases increased, so did the amount of money sunk owing to these frauds. According to RBI’s annual report for 2018-19, the amount sunk in March 2013 due to bank frauds was Rs. 10.2 thousand crore, which rose to a shocking Rs 71.5 thousand crore in March 2018.

The impact of rising bad loans and growing cases of bank frauds is already being felt by depositors, the latest example being the collapse of private sector Yes Bank. In on of the biggest ever bank failures in the country, the private lender collapsed, forcing RBI to impose a moratorium on the private lender on March 5. The beleaguered bank is now set to be bailed out with State Bank of India (SBI) being the lead rescuer, along with some private banks.

Often referred by the industry experts, analysts and bank employees’ unions as the reason behind the ‘scrambling’ Indian banking industry, the rising NPAs, written off bad loans, bank fraud cases, paint a sorry picture for the future of the Indian banking system.

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The Reserve Bank of India Has Written To All States, “Don’t Withdraw Funds From Private Banks” It Will Hurt Financial Stability. Moving Their Funds From Private Sector Banks To Public Sector Banks, Such Move Will Adversely Impact Financial Stability.

CineBuster Online | Updated — Thu, 12 Mar 2020 17:59:28 +0000

New Delhi: The Reserve Bank of India has written to all states to discourage them from moving their funds from private sector banks to public sector banks, pointing out that such a move will adversely impact financial stability.

The letter comes at a time of fears about the flight of deposits from private sector banks to public sector banks in the aftermath of the troubles at private sector lender Yes Bank and the consequent steps taken by RBI. There are concerns among the public about the safety of their funds in private banks after the RBI superseded the board of Yes Bank and placed a one-month moratorium limiting cash withdrawals to Rs 50,000.

State governments such as Maharashtra are said to have advised state entities and departments under their jurisdiction to transfer their funds from private-owned banks to public sector banks.

The letter, written to the chief secretaries of all states on 12 March, states that “apprehension on safety of deposits in private sector banks is highly misplaced”. It added that “such reactive decision will not be in interest of stability of financial system in general, and the banking system in particular”.

The RBI sought to assure the state governments that it has adequate powers to regulate and supervise private sector banks and using these powers, the RBI has ensured that depositors’ money is safe. It went on to ask the state governments to reconsider their decision about shifting their funds and those of its other entities from private sector banks.

The letter also talked about the swift measures taken by the central bank with respect to Yes Bank and how the central bank is trying to finalise the scheme for reconstruction of the bank at the earliest.

Prashant Kumar, Yes Bank’s administrator appointed by RBI, had said in interviews that the moratorium on the bank could be lifted as early as Saturday. The central bank fears that there could be a flight of deposits after the lifting of the moratorium and is said to be preparing steps to handle the outflow.

India Ratings and Research, in an 11 March report, had pointed out that “delays in resuming normal services could impact the near-term liquidity of some of the bank’s customers. Also, corporate groups with a large dependency on the bank could face a longer period of disruption”.

The post The Reserve Bank of India Has Written To All States, “Don’t Withdraw Funds From Private Banks” It Will Hurt Financial Stability. Moving Their Funds From Private Sector Banks To Public Sector Banks, Such Move Will Adversely Impact Financial Stability. first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

Sachin Sawant Says PM Modi And Amit Shah Were Worried Only About Gujarat And Not The Whole Country On Gujarat Firm Withdrew ₹265 Crore A Day Before RBI Imposed Moratorium On Yes Bank

CineBuster Online | Updated — Mon, 09 Mar 2020 12:38:57 +0000

In a curious incident Vadodara Smart City Development Company — a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC) — withdrew ₹265 crores from Yes Bank a day before the Reserve Bank imposed a moratorium on the bank. On Thursday, the RBI restricted withdrawals from Yes Bank to ₹50,000 per depositor due to the private lender’s precarious financial situation.

As per media reports, Sudhir Patel, chief executive officer of the SPV and deputy municipal commissioner of the VMC, said on Friday that the amount had been received from the Centre as part of a grant under the Smart City Mission and deposited with a local Yes Bank branch.

It was withdrawn two days ago considering the problems faced by Yes Bank and transferred to a new account at Bank of Baroda, he contended. Referring to the Vadodara Smart City Development Company withdrawing ₹265 crores from Yes Bank a day before the RBI imposed the moratorium, Maharashtra Congress spokesperson Sachin Sawant alleged that this shows Prime Minister Modi and Union Home Minister Amit Shah were worried only about Gujarat and not the whole country.

He said the BJP-led Pimpri-Chinchwad Municipal Corporation in Maharashtra has ₹905 crores deposited in Yes Bank, but it was allegedly not ‘informed’ by the Modi-Shah duo.

The post Sachin Sawant Says PM Modi And Amit Shah Were Worried Only About Gujarat And Not The Whole Country On Gujarat Firm Withdrew ₹265 Crore A Day Before RBI Imposed Moratorium On Yes Bank first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

Yes Bank As Presenting Sponsor Of 2 Day Global Business Summit Commencing Tomorrow! PM Modi As The Keynote Speaker At The Event

CineBuster Online | Updated — Mon, 09 Mar 2020 05:06:47 +0000

Mumbai: Yes Bank founder Rana Kapoor, arrested by the ED and also being investigated by the CBI, was seen in the same picture along with bank fraudster Nirav Modi posing with Prime Minister Narendra Modi in Davos at the World Economic Forum meet in 2018.

What is ironical is that on March 6, while the PM was delivering a speech at The Economic Times Global Business Summit, an event which had Yes Bank as its main sponsor, talking about his grandiose plans about India’s economy, the Reserve Bank of India had already put a notice on the country’s fourth largest private bank and capped monthly withdrawal limit for account holders at Rs 50,000.

Congress leader and former Union finance minister P Chidambaram on Saturday said the Yes Bank fiasco was caused by “mismanagement” of financial institutions under the BJP government and demanded that the RBI conduct a thorough probe and fix accountability in the matter.

He said it was “bizarre” for State Bank of India to invest Rs 2,450 crore to pick up a 49-per cent stake in the crisis-ridden bank under a government-approved bailout plan.

Yes Bank indulging in loan giving spree “isn’t banking but buccaneering”, he said.

The fiasco in the private sector lender was caused by “mismanagement of financial institutions under BJP government”, the Congress leader said and demanded a thorough probe by the Reserve Bank of India into the crisis.

The post Yes Bank As Presenting Sponsor Of 2 Day Global Business Summit Commencing Tomorrow! PM Modi As The Keynote Speaker At The Event first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

Yes Bank Crisis Roshini Kapoor Daughter Of Rana Kapoor Stopped At Mumbai Airport Before She Could Fly To London

CineBuster Online | Updated — Sun, 08 Mar 2020 16:26:45 +0000

Mumbai: A news agency report said a company linked to Kapoor’s daughter had received loans from DHFL. It said the probe is likely to look at the possible quid pro quo in loans availed and granted by DHFL.

A company linked to Kapoor’s daughter is under ED’s radar. Yes Bank founder Rana Kapoor’s daughter Roshini was stopped at Mumbai airport while attempting to board a flight to London on Sunday after her father was arrested by the Enforcement Directorate in the small hours in a case of alleged financial irregularities, including suspected money laundering, said a top ED official.

The ED had issued lookout notices against Rana Kapoor and his family members including his wife Bindu Kapoor, daughters Rakhee Kapoor Tandon, Radha Kapoor and Roshni Kapoor.

ANI reported that Roshini was stopped before she could board a British Airways flight to London.

Earlier today, after his arrest around 3 am, Kapoor was sent to ED’s custody till April 11, where he is likely to be questioned over loans granted by Yes Bank to Dewan Housing Finance Limited (DHFL) which turned into non-performing assets (NPAs) along with other suspicious loans that are believed to have contributed to the bank’s present financial crisis. A news agency report said a company linked to Kapoor’s daughter had received loans from DHFL. It said the probe is likely to look at the possible quid pro quo in loans availed and granted by DHFL.

Kapoor is reported to have defended the DHFL loan to a company linked to his daughter in a Mumbai court on Sunday. Central Bureau of investigation also registered a case against Kapoor on Sunday to probe possible corruption and criminal conspiracy.

Rana’s arrest was carried out after he was questioned for hours at his Mumbai residence on Friday evening.

Yes Bank is undergoing a financial crunch which has led to intervention by the Reserve Bank of India (RBI) and the Indian government. A moratorium has been imposed on the bank and the RBI has appointed an administrator to see it through the crisis period. The bank is battling NPAs and has failed to raise capital. RBI has barred withdrawal of more than Rs 50,000 from bank deposits for a period of 30 days which ends on April 3 and has floated a draft plan to infuse fresh funds in the bank.

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Crisis-Hit Yes Bank’s Founder Rana Kapoor Sent To Enforcement Directorate’s Custody Till March 11 By A Special Holiday Court In Mumbai On Sunday, Hours After His Arrest

CineBuster Online | Updated — Sun, 08 Mar 2020 08:48:39 +0000

Mumbai: Crisis-hit Yes Bank’s founder Rana Kapoor was sent to Enforcement Directorate’s custody till March 11 by a special holiday court in Mumbai on Sunday, hours after his arrest by the agency.

The central agency had arrested Rana Kapoor around 3am on Sunday under the Prevention of Money Laundering Act (PMLA) related to Dewan Housing Finance Corporation Ltd (DHFL). Before that, he was questioned for hours.

ED had taken the Yes Bank founder to the Ballard Pier office in south Mumbai on Saturday morning for questioning.

Kapoor’s house was also raided by the agency on Friday night, a day after the Reserve Bank of India (RBI) put Yes Bank under a moratorium and capped withdrawals for its depositors at Rs 50,000 till April 3

The post Crisis-Hit Yes Bank’s Founder Rana Kapoor Sent To Enforcement Directorate’s Custody Till March 11 By A Special Holiday Court In Mumbai On Sunday, Hours After His Arrest first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

ED Arrested Yes Bank Founder Rana Kapoor Around Under Money Laundering Act Related To Dewan Housing Finance Corporation Ltd (DHFL) In The Wee Hours Of Sunday.

CineBuster Online | Updated — Sun, 08 Mar 2020 06:27:30 +0000

Mumbai: After being questioned for hours, the Enforcement Directorate (ED) arrested Yes Bank founder Rana Kapoor under money laundering case related to Dewan Housing Finance Corporation Ltd (DHFL) in the wee hours of Sunday.

Rana Kapoor was arrested around 3 am on Sunday under the provision of the Prevention of Money Laundering Act (PMLA). Kapoor was allegedly not cooperating in the probe, a report in news agency PTI said, quoting officials.

He will be produced before a local court during the day on Sunday.

The ED had taken crisis-hit Yes Bank founder to the Ballard Pier office in South Mumbai Saturday morning for questioning.

Several corporate borrowers of Yes Bank later turned into corporate defaulters. This includes marquee names such as Anil Ambani group, Cafe Coffee Day, Jet Airways, IL&FS, and DHFL among others.

On Friday night, the ED had raided Kapoor’s residence and carried out searches a day after the Reserve Bank of India put Yes Bank under a moratorium and capped withdrawals for its depositors at Rs 50,000 till April 3.

The post ED Arrested Yes Bank Founder Rana Kapoor Around Under Money Laundering Act Related To Dewan Housing Finance Corporation Ltd (DHFL) In The Wee Hours Of Sunday. first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

P Chidambaram Slams The BJP-Led Government For Allowing Huge Spike Loan A Stunning Jump In Yes Bank’s Outstanding Loans From Rs 55,633 Crores In 2014 To Rs 2,41,499 Crores In 2019

CineBuster Online | Updated — Sat, 07 Mar 2020 17:05:40 +0000

New Delhi: Congress leader P Chidambaram on Saturday said the government’s bailout plan for the crisis-hit Yes Bank was “bizarre”, targeting the BJP-led administration over a massive oversight failure that allowed a 35 per cent per year jump in its loan book since 2014.

“The plan appears to be that SBI (State Bank of India) will invest Rs 2,450 crore to pick up a 49 per cent stake in the restructured capital of the bank at a price of not less than Rs 10 per share, face value Rs 2. This is bizarre when the net worth of the bank is zero,” Mr Chidambaram said.

“I don’t get the impression that SBI was a volunteer in the rescue act. Just as LIC (Life Insurance Corporation) wasn’t for IDBI [Bank]. These are command performances,” the former finance minister added.

Outlining a restructuring plan for Yes Bank after restrictions imposed by the RBI, Finance Minister Nirmala Sitharaman on Friday had lashed out at opposition criticism, claiming that the crisis originated on Congress watch. She also mocked Mr Chidambaram as a “self-appointed competent doctor” and questioned his track record.

On Saturday, Mr Chidambaram countered her, saying, “Sometimes when I listen to the Finance Minister, I feel the UPA (Congress-led United Progressive Alliance) is still in power, I am still the finance minister and she is the opposition.”

Laying the blame squarely on the BJP-led government at the centre for a stunning jump in Yes Bank’s outstanding loans from Rs 55,633 crores in 2014 to Rs 2,41,499 crores in 2019, the Congress leader said, “Obviously if you mismanage, you will lurch from one crisis to another.”

“The loan book was allowed to grow despite RBI and government supervision at a rate of 35 per cent per year. Please also notice the spike in 2016-17 and 2017-18 – the two years immediately following demonetisation,” Mr Chidambaram added.

“Who authorised the grant of new loans after March 2014? Were the RBI and the government not aware that Yes Bank was in a loan-giving spree? It was not banking but buccaneering. Did no one at the government or the RBI read the balance sheet of the bank at the end of every year? Why did the alarm bells not ring when Yes Bank reported its first quarterly loss in March 2019?” the Congress leader said.

“The Yes Bank fiasco is only part of the mismanagement of the financial institutions under the watch of the BJP government,” he added. After months of steady deterioration in the financial position, Yes Bank was placed under a moratorium on Thursday, with the Reserve Bank of India (RBI) capping deposit withdrawals at the bank at Rs 50,000 per account for a month and superseding its board. The move triggered a bloodbath in the stock markets and sent customers scrambling to ATMs to withdraw whatever little money they could get their hands on.

The post P Chidambaram Slams The BJP-Led Government For Allowing Huge Spike Loan A Stunning Jump In Yes Bank’s Outstanding Loans From Rs 55,633 Crores In 2014 To Rs 2,41,499 Crores In 2019 first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.

Tirumala Tirupati Devastanam Withdrew ₹1300 Crores From YES Bank Recently

CineBuster Online | Updated — Sat, 07 Mar 2020 15:20:37 +0000

Andhra Pradesh Chief Minister Y.S. Jagan Mohan Reddy was apprised about the decision.
Tirumala Tirupati Devastanam withdrew deposits of ₹1,300 Crores from YES Bank recently, according to a release in the wake of the Reserve Bank of India capping withdrawal limits on depositors in YES Bank.

It is said that TTD board chairman Y.V. Subba Reddy, who had foreseen the situation after going through performance reports of certain banks in which TTD has deposits, had taken a decision to withdraw the deposits from YES Bank and also apprised Chief Minister Y.S. Jagan Mohan Reddy about it. Mr. Jagan had ensured the deposits were withdrawn without any issues, it is said

The post Tirumala Tirupati Devastanam Withdrew ₹1300 Crores From YES Bank Recently first appeared on Latest News, Breaking News, National News, World News, India News, Bollywood News, Business News, Politics News, Sports News, Entertainment News - CineBuster.