On Friday, the Supreme Court denied bail to Rana Kapoor, the founder of Yes Bank, due to his involvement in a money laundering case that significantly impacted the entire banking system. During the hearing, the court questioned the prolonged investigation by the Enforcement Directorate (ED) in the Rs 3,642-crore Yes Bank scam. Justice Sanjiv Khanna noted that Yes Bank faced difficulties, and the Reserve Bank of India (RBI) had to intervene to safeguard investors.
The Supreme Court emphasized the importance of prioritizing cases with substantial stakes and numerous individuals involved. They expressed concern over the length of the ED investigation. The Additional Solicitor General explained that the complexity of the case, involving multiple shell companies and information gathering from foreign countries, contributed to the investigation’s extended duration.
Rana Kapoor’s lawyer argued that despite the bank’s troubles, his client should not be kept behind bars indefinitely. Kapoor had been incarcerated since March 8, 2020, which was over three years, exceeding the minimum sentence. However, the Supreme Court firmly responded that granting bail could lead to endless delays in the trial.
In the end, the Supreme Court declined to entertain the bail plea, prompting Kapoor to withdraw it. He had been in jail since March 2020, in connection with the DHFL money laundering case.
In July, SEBI issued a notice to Rana Kapoor, asking him to pay Rs 2.22 crore for the mis-selling of the private sector lender’s AT1 bonds. Failure to comply within 15 days could result in arrest, asset attachment, and bank account seizure.
The ED initiated the case against Rana Kapoor and other individuals on March 7, 2020, by registering an ECIR (Enforcement Case Information Report).
Supreme Court denied bail to YES Bank Founder Rana Kapoor
