The Enforcement Directorate arrested YES Bank co-founder Rana Kapoor early on Sunday morning on charges of money laundering.
Official sources said he has been held under the provision of the Prevention of Money Laundering Act (PMLA). He was taken into custody around 3 am as he is understood to have not been cooperating in the investigations.
The ED, which had been questioning Kapoor since Friday night, also carried out searches at his premises in Worli.
He is expected to be produced before a local court to obtain custody. He was initially brought to the ED office on Saturday.
Kapoor’s role is being questioned for loans given to scam-hit Dewan Housing Finance Corporation Ltd (DHFL), which later turned non-performing.
Also read: Decoding the YES Bank reconstruction plan
According to news agency PTI, the ED widened its probe in the case on Saturday as the premises of Kapoor’s three daughters in Delhi and Mumbai were searched to gather more information and evidence.
Quoting ED officials, PTI had said that Kapoor’s wife Bindu and daughters — Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor — are allegedly linked to some companies to which the suspected “proceeds of crime” have been traced.
The developments came after the Finance Ministry and the Reserve Bank of India began the bail-out of troubled private sector lender YES Bnak on March 5. On March 6, the RBI proposed a draft scheme of reconstruction under which State Bank of India has expressed its willingness to invest in the lender.
Finance Minister Nirmala Sitharaman said RBI would look into what went wrong at the private sector lender and try to fix individual responsibility.
