After spending four years behind bars, Yes Bank founder Rana Kapoor was granted bail and released from prison on Friday evening. This came following a court decision in an alleged loan fraud case, marking a significant development in the ongoing legal saga surrounding Kapoor.
Kapoor’s legal troubles began in March 2020 when he was first arrested by the Enforcement Directorate (ED) in connection with a money laundering case. Since then, both the ED and the Central Bureau of Investigation (CBI) have filed a total of eight cases against him, all related to alleged frauds at Yes Bank.
During his time in custody, Kapoor was held at the Taloja jail in neighboring Navi Mumbai while awaiting trial. Despite earlier bail grants in seven cases, he remained incarcerated until now.
M G Deshpande, the special judge for CBI cases, granted Kapoor bail earlier in the day, emphasizing that the trial in the current case was still pending, and his continued detention was unnecessary. However, the detailed order regarding the bail decision was not immediately available.
The CBI’s allegations against Kapoor revolve around his purported receipt of “illegal gratification” in the form of a property located in Delhi, sold at a price significantly below its market value in exchange for sanctioning a loan. The property in question belonged to Avantha Realty Ltd (ARL) and was purchased by Bliss Abode Private Limited, a company owned by Kapoor’s wife, Bindu Kapoor, in 2017.
According to the CBI, Yes Bank extended credit facilities totaling Rs 2500 crore to various Avantha Group companies and granted an additional Rs 400 crore loan to ARL as part of a quid pro quo arrangement. Kapoor, in his role as the managing director and chief executive officer of Yes Bank, headed the Management Credit Committee (MCC), which approved the loan.
In response to the charges, Kapoor’s bail application argued that the allegations in the CBI’s charge sheet did not establish his direct involvement in any wrongdoing. His legal team, led by Aabad Ponda and Rahul Agarwal, contended that Kapoor was not the sole or final approving authority in the loan transaction, and the MCC collectively approved it.
Moreover, Kapoor’s lawyers pointed out that co-accused in the case, including Avantha group promoter Gautam Thapar, were already out on bail, with Thapar even granted bail without being arrested.
“Considering these submissions, the court released him on bail. After completing all formalities, Kapoor was released from Taloja Central Prison around 7 pm,” said advocate Agarwal.
Kapoor’s release marks a significant moment in a complex legal battle that has unfolded since his arrest in 2020. As the trials continue, the case sheds light on the intricacies of corporate governance, alleged financial improprieties, and the challenges of holding key figures in the financial sector accountable for their actions.
