Yes Bank Crisis: Rana Kapoor Broken Down in Court Room and Confessed his Mental Illness

The high-flying Yes Bank’s former CEO and founder Rana Kapoor was arrested in the early hours on Sunday at around 3 a.m.

The arrest followed marathon grilling by the Enforcement Directorate for over 30 hours in a money laundering case involving the tainted Dewan Housing and Finance Corporation and Kapoor’s family-owned entities.

A reportedly ‘teary-eyed’ Kapoor was later produced before a holiday court, where he denied any wrong doing.

The ED told the court that Kapoor was not co-operating with the agency and had sought this custody till Friday, March 13. The court was told that his family companies were involved in the scam and there were several instances of quid pro quo. The court, however, placed him in ED’s custody till March 11.

Kapoor’s lawyer told the court that his client had been targeted as there is public outrage over the Yes Bank developments. He was ready to co-operate and submit all documents the agency wants. Therefore, the lawyer argued, his custody was not required; moreover, Kapoor was unwell and under treatment.

When asked if he has any complaints of ill-treatment by ED officials, Kapoor said he has been under psychiatric treatment after he lost his baby – the ‘Yes Bank’ -- and the agency even took him to two hospitals because he was having hallucinations. He assured the court that he is not running away and that the ED can even impound his passport.

About the Rs. 600 crores that the agency claims he received as kickbacks from DHFL for loans his bank sanctioned to the company, he told court that DHFL was an ‘AAA’ rated company and that the money was a loan taken from DHFL.

“It was about women’s entrepreneurship. Every iota of interest has been paid to DHFL,” he told the court. “We took a loan of Rs 600 crores, but it is performing.

It is a perfectly performing asset,” he claimed and said his three daughters are paying back interest on the dot.

The ED has registered a case against Kapoor under the Prevention of Money Laundering Act and he has been accused of financial crimes amounting to Rs. 4,300 crores.

The agency acted after the Reserve Bank of India imposed a moratorium on the bank, capped withdrawals at Rs. 50,000 and appointed its administrator.

The agency's case is that Kapoor sanctioned loans to DHFL in exchange for kickbacks. These loans turned into Non-Performing Assets. In exchange, DHFL also gave a ‘loan’ of Rs. 600 crore to an entity connected with Kapoor’s children.