• By Vaamanaa Sethi
  • Fri, 04 Aug 2023 12:30 PM (IST)
  • Source:JND
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The Supreme Court on Friday refused to hear the bail plea of former chairman and managing director of Yes Bank Rana Kapoor in a money laundering case. The court noted that this case rocked the credibility of the entire financial system of India.

In 2018, Yes Bank allegedly invested Rs 3,700 crore in short-term debentures of DHFL and sanctioned a loan of Rs 750 crore to a subsidiary of the non-banking finance company.

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Kapoor is also alleged to have received Rs 600 crore in bribes by extending a loan to DOIT Urban Ventures (India) Pvt Ltd, a company wholly owned by RAB Enterprises, which in turn was owned by Kapoor's wife and daughters.

Last month, the appex court had sent Kapoor a notice to pay Rs 2.22 crore  in a case of mis-selling the private sector lender's AT1 bonds.

Justice Sanjiv Khanna said the allegations in the DHFL case had put Yes Bank in a lot of trouble, which eventually forced the RBI to intervene. The court advised the Enforcement Directorate (ED) to complete the investigation and the trial at the earliest.

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Kapoor had moved to the Supreme Court, against Bombay High Court, which denied him bail in the DHFL money-laundering case. The high court said Kapoor was one of the main accused in the case, facing a serious charge of laundering public money.

Justice PD Naik of the Bombay High Court said that Kapoor had misused his official position to gain undue financial benefits for himself, his family members and associates. “ Couldn’t ignore Kapoor's role in the crime as well as the magnitude and seriousness of the offence,” he said.

Kapoor had sought bail on the grounds that he had been in custody since March 2020. The trial in the case would take a long time to commence and his custody was not necessary, which was rejected by the High Court in February 2021.

Kapoor had filed for second bail application, saying the maximum sentence under the Prevention of Money Laundering Act (PMLA) was 7 years and should be granted vail since he had been in custody for three years.