In a significant legal development, the Supreme Court, on August 4, dismissed the bail plea of Rana Kapoor, the founder of Yes Bank, in connection with a Rs 600 crore money laundering case. The apex court’s decision was motivated by the profound impact the case had on the entire banking system. Justices Sanjiv Khanna and Svini Bhatti, constituting the bench, directed Kapoor to submit a fresh bail plea after serving half of his sentence as an undertrial prisoner. Consequently, Kapoor withdrew the bail plea. The case revolves around the money laundering allegations related to Dewan Housing Finance Limited (DHFL).
This decision followed Kapoor’s earlier plea to the Bombay High Court, which was subsequently rejected in May. The High Court had ascertained that the proceeds of crime linked to the case amounted to ₹5,333 crore.
During the Supreme Court hearing, Justice Sanjiv Khanna remarked, “This case has shaken the Indian banking system. Yes Bank faced significant challenges, leading to the intervention of the Reserve Bank of India (RBI) to safeguard investors’ interests.”
The court also inquired into the reasons behind the prolonged investigation conducted by the Enforcement Directorate (ED) in relation to the Yes Bank scam. Expressing concern over the delay, the court emphasized the exceptional nature of certain cases and urged prioritized attention. The court expressed dissatisfaction with the pace of progress and stressed that a prolonged delay was unacceptable.
Rana Kapoor, who was arrested by the ED on March 8, 2020, in connection with the ₹600 crore money laundering case, has remained in custody since that time. The case has not only raised legal scrutiny but has also spotlighted the significance of ensuring the integrity and stability of India’s banking system.
