Yes Bank co-founder Rana Kapoor overruled objections by risk teams while sanctioning loans to RKW Developers and Belief Realtor, both owned by DHFL promoters
Yes Bank issued large amounts of credit to several companies that had stressed assets and liquidity issues, former chief executive officer (CEO) Ravneet Gill told The Enforcement Directorate (ED).
Gill said Yes Bank had created a credit watchlist of a number of large corporate borrowers on March 31, 2019, the Business Standard reported citing an ED chargesheet.
Moneycontrol could not independently verify the story.
"In this watchlist, the bank took a contingency provision of Rs 2,000 crore as a measure of prudent accounting and transparency," ED said in its report, as quoted by the Business Standard.
Yes Bank co-founder Rana Kapoor overruled objections by risk teams while sanctioning loans to RKW Developers and Belief Realtor, both owned by DHFL promoters, executives told ED.
"It was classified as a red-flagged account in November 2019, on the ground of non-commensurate progress in the project vis-à-vis the amount disbursed. Of the total sanctioned loan of Rs 1,700 crore, Rs 750 crore was disbursed on the same day of sanction," an executive told ED.
On May 24, A special Prevention of Money Laundering Act (PMLA) court made note of the chargesheet filed in the money-laundering case against Kapoor, his wife Bindu and their three daughters.Moneycontrol had first reported about the chargesheet in the Rana Kapoor case on May 6.