Yes Bank Scam: ED Arrests Cox & Kings CFO, Internal Auditor - Know All About Money Laundering Probe

Yes Bank founder Rana Kapoor, his wife and their three daughters, allegedly got huge amounts in kickbacks through the companies owned by them for sanctioning massive loans to some corporate entities.

(File Photo/ AFP)

Mumbai: The Enforcement Directorate on Tuesday arrested Anil Khandelwal, the Chief Financial Officer of a travel company named Cox & Kings in connection with the Rs 3,700 crore Yes Bank scam. As per reports, the probe agency also took into custody Naresh Jain - the internal auditor of the travel firm. The two have been arrested under sections of the Prevention of Money Laundering Act (PMLA). Both of them were produced before a court earlier today and were later sent to seven days' ED custody.

Enforcement Directorate arrested Anil Khandelwal, CFO of Cox and Kings Group and Naresh Jain, Internal Auditor of Cox and Kings Group under section 19 of Prevention of Money Laundering Act, 2002 (PMLA) for money laundering, in connection with Yes Bank case.

— ANI (@ANI) October 6, 2020

"During investigation in the money laundering case it has surfaced that Yes Bank has total outstanding of Rs 3,642 crore in respect of Cox & Kings Group of Companies (CKG)," an ED official close to the development told news agency IANS. "Further investigation revealed that CKG forged its consolidated financials by manipulating the balance sheets of overseas subsidiaries. In addition some board resolutions submitted to banks for sanctioning the loans were also found to be forged," the ED official said. He further said that during investigation it was also revealed that the loan sanction from Yes Bank was driven by then CMD Rana Kapoor and was given bypassing the norms. What is Yes Bank money laundering case? Yes Bank founder Rana Kapoor on March 8, 2020 on charges of money laundering for sanctioning loans to dubious companies for personal benefit. The ED last month attached Kapoor's properties in London valued at Rs 127 crore in London. The ED on July 9 attached Rs 2,203 crore of assets, comprising 344 bank accounts, investments and high-end vehicles in India, New York and Australia, of Kapoor and his family, Dheeraj and Kapil Wadhawan and others under the PMLA. The ED had registered a case of money laundering on March 7 this year based on the Central Bureau of Investigation FIR registered the same day against 12 people, including Kapoor, his wife and daughters, the Wadhawan brothers and five firms. What does ED chargesheet say? Nearly two months after he was arrested, the Enforcement Directorate (ED) On May 6 filed a chargesheet against Yes Bank founder Rana Kapoor before a special court. As per the chargesheet, Kapoors, including Rana Kapoor, his wife and their three daughters, allegedly got huge amounts in kickbacks through the companies owned by them for sanctioning massive loans to some corporate entities which later turned non-performing assets. Even the CBI has charged that Yes Bank had invested Rs 3,700 crore in short-term debentures in the DHFL for which the Wadhawans paid kickbacks of Rs 600 crore to Kapoor in the form of a loan to DoIT Urban Ventures India Pvt Ltd, owned by his daughters.