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Synopsis

The Bombay High Court on Thursday rejected the second bail application moved by Yes Bank founder Rana Kapoor in the Yes Bank-DHFL loan fraud case.

The single judge bench of Justice PD Naik opined that considering Kapoor's role in the crime, the magnitude and seriousness of the crime, he was not entitled for the bail.

"He has allegedly hatched conspiracy with owners of DHFL for siphoning huge amount. Though the applicant is in custody for three years, the involvement of public money shows that charge is serious. There is apprehension of tampering evidence. Hence, on the ground that applicant is in custody from 8th March 2020, bail cannot be granted", held the court. 

In the present matter, the prosecution case is that Kapoor entered into criminal conspiracy with Dheeraj Wadhwan and Kapil Wadhwan as well as others and extended undue financial benefit to M/s.DHFL and in return got undue financial benefits from Wadhwans.

Allegedly, during April-2018 and June-2018 Kapoor through M/s.Yes Bank Limited got invested Rs.3,700 crores in short term non-convertible debentures of DHFL and Kapil Wadhwan through DHFL paid kickback of Rs.600 in the garb of loan to Kapoor’s beneficially owned companies. Kapoor is one of the main accused in the complaint. Allegedly, Out of proceeds of crime of Rs.600 crores, Rs.378 crores have been invested overseas. Investment relating to the exact layering of proceeds of crime is still under investigation.

Court underscored that it has been alleged that Kapoor misused his official position to gain undue financial benefit for him and his family members.

Kapoor had moved the second bail plea on the ground that he had been in custody since March 8, 2020, and the maximum sentence which can be imposed in the present case is up to seven years. Therefore, stressing that there has been no progress in the trial yet, Kapoor sought the relief. 

However, court noted that the Enforcement Directorate had apprised the court that the department is taking all necessary steps towards completion of investigation and that predicate case bearing No.830 of 2020 in FIR No.RC 210 2020 E0004 dated 7th March 2020 filed by CBI/EO-I, New Delhi has now been transferred to the Special PMLA Court in terms of Section 44(1) (c) of PMLA.

The proceedings for PMLA case and predicate agency would now be taken up by PMLA Special Court with regard to the framing of charges and it is in the court’s domain to frame the charges, the ED had informed the high court. 

Taking the same into account, the high court opined that gravity of accusations in the present case cannot be brushed aside.

Case Title: Rana Kapoor v. Directorate of Enforcement and Another