NEW DELHI: After intense grilling for over 20 hours, the Enforcement Directorate has arrested former Yes Bank Founder Rana Kapoor and sources in the ED claimed more questioning and arrests would follow in coming days, including of his family members.

On Friday night, ED had conducted the raid on Kapoor's residence in Mumbai. It had also registered a case against him under the Prevention of Money Laundering Act. The arrest happened around 3 am on Sunday.

Rana Kapoor, who was a co-founder of Yes Bank, will now be produced before a court at 11 am. The arrest comes after charges of alleged financial irregularities and mismanagement in the operations of the private bank surfaced and the RBI and Union government initiated action to control its affairs.

The sources revealed that ED is investigating whether a dummy company owned by Kapoor and two of his daughters by the name of Doit Urban Ventures had received Rs 600 crore as kickbacks from DHFL in return for sanctioning of loans to the tune of Rs 4,450 crore from Yes Bank.

Mumbai: Enforcement Directorate (ED) arrests #YesBank founder #RanaKapoor. Visuals from ED office where he was being questioned. pic.twitter.com/K7GSr7gCl1

— ANI (@ANI) March 7, 2020

The investigating officer of the case had recorded Kapoor's statement under the PMLA when he was first interrogated on Friday night at his upscale residence in 'Samudra Mahal' complex in Worli area here.

He was brought to the ED office on Saturday noon for a fresh round of questioning. On Saturday, the agency widened its probe in the case as the premises of Kapoor's three daughters in Delhi and Mumbai were searched to gather more information and evidence.

According to officials, Kapoor's wife Bindu and daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor -- are allegedly linked to some companies to which the suspected "proceeds of crime" have been traced.

The central agency is also probing Kapoor's role in connection with the disbursal of loans to some corporate entities and the subsequently alleged kickbacks reportedly received in his wife's accounts.

Other alleged irregularities are also under the agency's scanner including the one related to the alleged PF fraud in the Uttar Pradesh power corporation, they added.

The CBI has recently taken over the investigation into the Rs 2,267-crore Employees' Provident Fund fraud in Uttar Pradesh, where hard-earned savings of power sector employees were invested in Dewan Housing Finance Corporation (DHFL).

The ED action came after the Reserve Bank of India (RBI) on Thursday imposed a moratorium on the capital-starved Yes Bank, capping withdrawals at Rs 50,000 per account, and superseded the board of the private sector lender with immediate effect.

Yes Bank will not be able to grant or renew any loan or advance, make any investment, incur any liability or agree to disburse any payment. As per the RBI's draft reconstruction scheme, State Bank of India will pick up 49 per cent stake in the crisis-ridden Yes Bank under a government-approved bailout plan.

(With PTI Inputs)