Yes Bank case: ED arrests Wadhawan brothers\, gets 10-day custody



Yes Bank case: ED arrests Wadhawan brothers, gets 10-day custody

The brothers are already in jail after being arrested by the CBI, which is also probing the same case, last month.


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The Enforcement Directorate (ED) on Thursday arrested DHFL promoters Kapil and Dheeraj Wadhawan in connection with its money laundering probe linked to Yes Bank co-founder Rana Kapoor. 

They were produced in a special court in Mumbai and sent to 10 days ED custody. They were arrested under the provisions of the Prevention of Money Laundering Act (PMLA), the officials said.

The brothers are already in jail after being arrested by the Central Bureau of Investigation (CBI), which is also probing the same case, last month. 

DHFL promoter Kapil Wadhawan and RKW Developers promoter Dheeraj Wadhawan were arrested last month from a Mahabaleshwar-based quarantine facility in a case of alleged bribery also involving former Yes Bank CEO Rana Kapoor.

In its FIR in the Yes Bank case, the CBI has alleged that Kapoor entered into a criminal conspiracy with Kapil Wadhawan for extending the financial assistance to DHFL through Yes Bank in return for substantial undue benefits to himself and his family members through companies held by them.

The scam, according to the CBI, started taking shape between April to June, 2018 when Yes Bank invested Rs 3,700 crore in short-term debentures of the scam-hit DHFL.

In return, Wadhawan allegedly "paid kickbacks of Rs 600 crore" to Kapoor and family members in the form of loans to DoIT Urban Ventures (India) Pvt Ltd held by the wife and daughters of Kapoor.

The Enforcement Directorate is probing the money laundering angle into the case. The ED has accused Kapoor, his family members and others of laundering "proceeds of crime" worth Rs 4,300 crore by receiving alleged kickbacks in lieu of extending big loans through their bank that later allegedly turned non-performing assets (NPA).

Kapoor is also in ED custody. 

The ED is also probing the Wadhawan brothers in another money laundering probe linked to late gangster Iqbal Mirchi.