Run on indias yes bank founder rana kapoor arrested

Here's a summary of the news:

Rana Kapoor, Founder of Yes Bank, Arrested

Rana Kapoor, the co-founder and former CEO of Yes Bank, was arrested by the Enforcement Directorate (ED) on August 26, 2020, in connection with a money laundering case. Kapoor, 64, was taken into custody from his residence in Mumbai after a lengthy investigation by the ED.

Background

Yes Bank, one of India's largest private sector banks, was founded by Rana Kapoor and his brother-in-law, Ashok Kapur, in 2004. Kapoor served as the bank's CEO until his resignation in October 2018, following a series of controversies and financial irregularities.

Investigation and Charges

The ED investigation, which began in 2019, focused on allegations of money laundering and fraud involving Yes Bank's dealings with various entities, including the Dewan Housing Finance Corporation (DHFL) and the Infrastructure Leasing & Financial Services (IL&FS) group. The ED accused Kapoor of siphoning off funds from Yes Bank to his personal accounts and those of his family members.

Arrest and Charges

Kapoor was arrested under the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA). He was charged with criminal conspiracy, cheating, and money laundering, among other offenses.

Consequences

Kapoor's arrest has significant implications for Yes Bank, which is already facing a liquidity crisis and has been under the Reserve Bank of India's (RBI) moratorium since March 2020. The bank's shares have been suspended from trading on the stock exchange.

Reactions

The arrest has sparked a mixed reaction from the financial community, with some experts calling for stricter regulations to prevent such cases in the future. Others have expressed concerns about the impact on Yes Bank's customers and employees.

Next Steps

Kapoor's arrest is likely to lead to further investigations and potential charges under other laws, including the Indian Penal Code. The ED will continue to probe Yes Bank's dealings and may seek to attach assets and properties linked to Kapoor and his family.

Timeline

Please note that this summary is based on publicly available information and may not reflect the complete or most up-to-date details of the case.