Allowing bail to former Yes Bank managing director Rana Kapoor, a special court has come down hard on the Enforcement Directorate (ED), saying the agency, which investigates economic offences, had “not shown active approach” in the Avantha realty case.
Special judge MG Deshpande in a detailed order called criticised ED for dragging the trial for long, the Indian Express has reported. Kapoor and co-accused Gautam Thapar of the Avantha Group were granted bail last week.
Deshpande noted that “it is a fact” that not a single Prevention of Money Laundering Act case was disposed of by the special court established for PMLA cases. “ED had not shown any active approach to begin the trials of the cases that have been pending since long,” he added.
The order also noted that the ED did not arrest Kapoor or Thapar during the investigation stage nor filed a report against them for tampering with evidence.
The trial was “very big and lengthy” as it included trial related to scheduled offences, which had to be tried simultaneously with the PMLA case but “till date no one is sure when the trial will begin and conclude”, the court said.
“This aspect cannot be ignored and also a part of merits of this application,” the court said.
The court further said “issue of absconding does not arise” since Kapoor was also accused in other pending cases and was unlikely to be released in the near future. He was arrested in the Yes Bank case in 2020.
The Avantha realty case pertains to the allegations about the sale of a property situated on Amrita Shergill Marg in Delhi to a company owned by the wife of Rana Kapoor.
Denying Thapar bail in December, Special CBI court judge MR Purwar noted that prima facie it came to light that Rana Kapoor, the then MD and CEO of Yes Bank, abused his official position to acquire a valuable property at an inadequate consideration although its actual value was higher.
Further, Thapar, promoter of Avantha Realty, and Rana Kapoor's wife Bindu, through their respective companies abetted in the commission of the said offences by Rana Kapoor, the court said.
As per the CBI investigation, it came to light that Rana Kapoor, in conspiracy with Thapar and Bindu Rana Kapoor, was able to fraudulently induce the bank to release the property for sale at an inadequate value.
It has also come to light that Rana Kapoor further abused his official position to give additional loans to various group companies of Gautam Thapar, which were not utilised for the purpose for which it was given and major portion was used for ever greening of the existing loans with Yes Bank, the CBI said.
The Kapoors were also able to induce the bank to grant the loan of Rs 400 crore, to Avantha Realty against a sham rental agreement entered between two group companies of Avantha Group and thus cheated Yes Bank, it said.
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