MONEY LAUNDERING CASE: SPECIAL COURT DENIES BAIL TO "PILLARS OF SCAM"

Mumbai: Terming the ₹5,050 crore Yes Bank-DHFL money laundering case “a classic case”, a special court has denied bail to DHFL’s promoters and brothers Kapil Wadhawan and Dheeraj Wadhawan, observing that they are “pillars of the scam”.

The court said they are “pillars of the conspiracy” and have dealt with public money for their own illegal purposes and caused great damage to Yes Bank.

“Perfect case of money laundering”

Special Judge MG Deshpande further called the case a “perfect case of money laundering” and referred to the way systematically tainted money was projected as untainted. It said the gravity and magnitude (of the offence) cannot be overlooked. The court said Yes Bank’s money is as such the wealth of the nation which has been misused by the accused persons for their own benefits. 

As per the Enforcement Directorate’s (ED) case, Yes Bank had purchased short-term debentures of DHFL worth ₹3,700 crore and, in return, DHFL had paid ₹600 crore in kickbacks to Yes Bank’s then CEO and MD Rana Kapoor through his daughter’s company in the garb of a loan. DHFL did not redeem the debentures though. Additionally, a loan of ₹750 crore was sanctioned by the bank to a company linked with the Wadhawans but the amount was not used for the purpose it was sought for. 

Money that was laundered used by accused persons to purchase several properties in India

The court in its order referred to the ED’s additional chargesheet which had produced a long list of 101 companies owned by the banker and his family members used for diverting, parking and siphoning off tainted money. The court said all flow charts are supported by bank statements and show that there is substance in the ED’s contention. It said the ED has alleged that the money that was laundered was used by accused persons to purchase several properties in India and abroad. It called all this “very serious”. 

Remarking on Kapoor, the court said he was a public servant holding a responsible high level position in Yes Bank. It said he should not have dealt with such transactions with DHFL, which subsequently percolated to his daughters, instead of for sanctioned purposes. 

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2023-05-19T00:33:40Z dg43tfdfdgfd