The Enforcement Directorate (ED) on Wednesday filed a chargesheet against YES Bank founder Rana Kapoor, his wife and three daughters on charges of money laundering to the tune of ₹5,050 crore. The ED said it was investigating debentures and loans worth ₹5,402.1 crore that Yes Bank had given to Dewan Housing Finance Limited (DHFL), its group companies, and Sumer Group.

The Directorate says the loans above ₹5,000 crore had been disbursed for pecuniary gains by Mr. Kapoor. He and his family were linked to 97 companies which were used to either divert or siphon off funds. Mr. Kapoor was instrumental in sanctioning loans worth ₹30,000 crore, of which loan accounts worth ₹20,000 crore have turned non-performing assets, says the agency. For the debentures, Mr. Kapoor and his family members got a kickback of ₹600 crore from Kapil Wadhawan, DHFL promoter, who paid the sum to DOIT Urban Ventures (India) Pvt. Limited., under the garb of repayment of ₹300 crore loan taken earlier, and the rest for general purposes.

The loan was given on the basis of five properties whose value was inflated from ₹39.66 crore to ₹735 crore under the assumption that the 7.79 acres of land at Alibaug and 91.63 acres of land at Raigad could be converted from agricultural to residential by obtaining approval from local authorities, and thereby use it for construction and eco-tourism activity.

The ED found that DOIT was in the name of Mr. Kapoor’s daughters Roshini Kapoor, Radha Kapoor Khanna and Raakhee Kapoor Tandon, and it also found that the daughters had never dealt with the firm and only Mr. Kapoor did the dealings of DOIT.

The ED also mentions that Yes Bank had sanctioned a loan of ₹750 crore to RKW Developers Private Limited, a group company of DHFL, for their Bandra Reclamation project and that the entire sum was siphoned off by Mr. Wadhawan.

The loan of ₹750 crore was taken by Belief Realtors, an RKW group company, which was immediately transferred to KYTA Advisors Private Limited through three group companies of Dheeraj Realty, and KYTA Advisors transferred the full amount to RIP Developers Private Limited which transferred the whole amount to DHFL immediately. Once DHFL received the ₹750 crore loan, it then sanctioned a loan to Radius Group and Paresh Shah Group, who in turn, paid an amount of ₹450 crore from the monies received from DHFL, to Yes Bank for repayment of earlier loan to these companies, claimed the ED.

The ED also told the court that Yes Bank had sanctioned a loan of ₹202.1 crore, in parts, to one Mack Star Marketing Private Limited, a joint venture of De Shaw Group and promoters of HDIL Group — Sarang Wadhawan, Rakesh Wadhawan and Waryam Singh. The whole amount of loan sanctioned by the Yes bank was siphoned off to the HDIL group companies and this amount was used for payment of earlier loan taken by HDIL to Yes Bank. The said loans were on the verge of becoming NPA.