Yes Bank Co-Promoter Rana Kapoor Gets Bail In Money Laundering Case After Three Years

The case in which Rana Kapoor has been granted bail pertains to a Rs 200-crore loan granted to Mack Star Marketing Pvt Ltd by Yes Bank.

The court held that Rana Kapoor did not receive any kickbacks and that the alleged "laundered" amount never came to him.

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A special court in Mumbai granted bail to Rana Kapoor, co-promoter of Yes Bank, in a money laundering case. The court held that Kapoor did not receive any kickbacks and that the alleged "laundered" amount never came to him. The Prevention of Money Laundering Act (PMLA) court noted that an accused in such cases cannot be kept in prison without trial. Kapoor, who has been in jail since March 2020, is accused of financial irregularities and receiving purported kickbacks for dubious loans provided by Yes Bank to high-profile borrowers.

The case in which Kapoor has been granted bail pertains to a Rs 200-crore loan granted to Mack Star Marketing Pvt Ltd by Yes Bank. The Enforcement Directorate (ED) claimed that the Wadhawans had obtained six loans worth Rs 200 crore from Yes Bank through Mackstar, a joint venture promoted by Ocean Deity Investments Holdings Ltd and a private firm owned by the Wadhawan brothers. The amount was used to clear other liabilities and credit facilities in violation of norms. Kapoor's role in sanctioning the loan is under investigation.

In his bail plea, Kapoor sought relief under relevant provisions of the CrPC, the PMLA as well as on medical grounds. The ED opposed the bail plea, arguing that the banker was actively involved in the offence of money laundering. The central probe agency also contended that the offence alleged against him was "serious" in nature, and therefore, bail cannot be granted to him.

The court noted that a normal loan proposal always goes through detailed scrutiny and scanning as per norms of the bank and is sanctioned only after meeting the mandatory requirements. In this case, different departments of the bank were responsible for sanctioning such a huge loan of Rs 200.3 crore from Yes Bank, said the judge. The bail granted to co-accused has never been challenged by the probe agency, allowing it to attain finality. Kapoor stands on the same footing. Alleged laundered money had never come to him, nor was there anything to show he received any kickback for the same, the court said.

The court further noted it is evident that Kapoor had undergone undue incarceration for 73% of the minimum punishment of three years provided under section 4 of the PMLA. The special judge emphasized that economic offenses should be evaluated based on their severity and scope. However, the judge also noted that an accused in such cases should not be held in prison without trial and subjected to a minimum sentence without due process. The court has a duty to prevent undue imprisonment of any undertrial prisoner, even if the Enforcement Directorate may have discretion under the Prevention of Money Laundering Act.

While Yes Bank co-promoter Rana Kapoor was granted bail in a money laundering case connected to the alleged misappropriation of a Rs 200 crore bank loan, he remains detained because he faces multiple other charges, including an alleged fraud at the bank he co-founded. The Wadhawans, who are also accused in the case, are in judicial custody for multiple charges investigated by the ED and CBI.