Yes Bank fraud: Case against Rana Kapoor sent to lower court for trial

The PC Act was invoked by treating Kapoor as a `public servant’ as he was then CMD of Yes Bank.

The special CBI court here on Friday sent the Yes Bank fraud case to a Metropolitan Magistrate, as the CBI has not obtained sanction to prosecute main accused Rana Kapoor under the Prevention of Corruption (PC) Act. Last month the Central Bureau of Investigation filed a charge sheet against Yes Bank’s co-founder Kapoor under the Prevention of Corruption Act and Indian Penal Code. But the agency has not yet initiated the process to obtain the sanction needed to prosecute under the PC Act, the court was informed.

Upon the judge’s query, the CBI said that investigation against the accused was still going on and it needed some time to deal with the issue of sanction. It also argued that there was no need for sanction for prosecution under IPC sections 420 (cheating), 409 (criminal breach of trust by public person).

The PC Act was invoked by treating Kapoor as a `public servant’ as he was then CMD of Yes Bank. The court said it was not appropriate to keep proceedings pending for indefinite period. “So at this stage, the prima facie offences are made out against all accused for the offences punishable under Section 420(cheating), 409 (criminal breach of trust) of IPC which is triable by Metropolitan Magistrate.

“Accordingly, the present proceeding of the case be remitted to the Chief Metropolitan Magistrate, Esplanade, for
disposal according to law,” it added. As per the CBI, DoIT Urban Ventures (India) Pvt Ltd, a firm linked to the Kapoor family, received funds of Rs 600 crore when Yes Bank had extended loans of more than Rs 3,000 crore to the scam-hit DHFL group.

The bank allegedly did not make enough efforts to recover the loan, and the funds received by DoIT Ventures were
kickbacks for going easy on loan recovery, it is alleged.