In a remarkable turn of events, Rana Kapoor, the embattled co-founder of Yes Bank, has been granted bail by a special court in Mumbai. Mr. Kapoor, who had been arrested by the Enforcement Directorate (ED) on March 7, 2020, was implicated in a substantial bank fraud amounting to ₹ 466.51 crore. Additionally, he faced charges of money laundering and was embroiled in eight separate cases related to bank fraud. After a prolonged period exceeding four years, he has finally managed to secure bail in all cases registered against him by the ED.
Following the court’s decision, Rana Kapoor exited the gates of Taloja Central Prison at 7 p.m., marking an end to his protracted confinement. Reflecting on the case, Mr. Kapoor’s counsel, Rahul Agarwal, laid out the accusations faced by his client. Yes Bank Ltd had come under fire for allegedly misappropriating loan amounts, with intentions suspected to be centered on acquiring the coveted property located at Amrita Shergill Marg (ASM) in New Delhi through Bliss Abode Private Limited (BAPL). Rana Kapoor had argued for bail, asserting that the evidence in the chargesheet did not overtly implicate him, suggesting that no tangible offense was attributed to him.
The bailout was granted in connection with the case pursued by the CBI, which accuses both Mr. Kapoor and Avantha Group promoter Gautam Thapar of a complex web of criminal conspiracy, criminal breach of trust, cheating, and forgery. The intent, allegedly, was to misappropriate public funds amounting to ₹ 466.51 crore. While Thapar had already been released on bail without undergoing arrest, and the other two accused had been bailed, Kapoor stressed that the decision-making for the disputed loan was not his alone to carry. He maintained that the entirety of the Management Credit Committee (MCC), which had within its means the power to veto the decision, had unanimously approved the loan without objections from any members.
Mr. Agarwal shed light on the procedural discrepancies that have marred the case. He noted that while some MCC members were listed as witnesses in the CBI’s investigation, they were tagged as accused by the ED in the PMLA offence. Additionally, he contested the CBI’s central allegation that the ASM property was purchased at an undervalued rate, citing reliance on outdated or flawed valuation reports. Furthermore, Agarwal argued against the ED’s narrative that attempted to paint Kapoor as having failed to disclose his wife’s directorial role in BAPL during the transaction with Avantha Reality Ltd (ARL). Agarwal pointed out that Kapoor did, in fact, make such a disclosure to Yes Bank’s board as corroborated by the chargesheet.
Expanding on the defense, the lawyer highlighted the baselessness of the case where connections were haphazardly drawn between certain loans granted by Yes Bank to Avantha Group entities and the subsequent property sale to BAPL. According to Agarwal, there existed no correlation between the loans and the property transaction. Upon assessing the evidence, the court adjudged Mr. Kapoor eligible for release on bail.
This case underscores the intricacies of financial crimes involving top banking executives, where the line between lawful conduct and misappropriation can often be quite nebulous. Rana Kapoor’s bail marks a critical juncture in a case that has captured the attention of India’s financial sectors, shedding light on the governance standards within private banking institutions and the mechanisms that allow for both oversight and accountability. As the proceedings continue, all eyes will remain on the unfolding legal narrative that surrounds the once-celebrated co-founder of Yes Bank.
