172@29@17@142!~!172@29@0@53!~!|news|business|large-scale-scams-at-yes-bank-for-years-ed-chargesheet-reveals-report-5313121.html!~!|controller|infinite_scroll_article.php
Moneycontrol
Financial Freedom Offer: Subscribe to Moneycontrol Pro and grab benefits worth ₹15,000/-
you are here: HomeNewsBusiness
Last Updated : May 26, 2020 11:02 AM IST | Source: Moneycontrol.com

Large-scale scams at Yes Bank for years, ED chargesheet reveals: Report

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

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

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.

The companies on this list include Reliance Group, Essel Group, Cox & Kings, Dewan Housing Finance (DHFL), Omkar Group, Radius Developer and others.

Close

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.

Also read - 101 firms, 168 bank accounts and 3 holding companies: How Yes Bank’s Rana Kapoor ran a byzantine business empire

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.
First Published on May 26, 2020 09:46 am

tags #Yes Bank

Sections