Co-founder of Yes Bank, Rana Kapoor, granted bail in banking fraud case

On Friday, a special court approved the release of Rana Kapoor, the co-founder of Yes Bank, on bail about a bank fraud case involving ₹466.51 crores. This decision clears the path for Kapoor’s release from incarceration after spending four years in jail.

Rana Kapoor is an Indian former banker who established Yes Bank, a private sector bank based in Mumbai, in 2003. Before founding Yes Bank, Kapoor had a career working at various financial institutions. He served as the Managing Director, Chief Executive Officer, and one of the co-founders of Yes Bank after its inception.

He was granted bail in a case filed by the Central Bureau of Investigation (CBI) related to Avantha Realty. He was arrested by the Enforcement Directorate (ED) on March 8, 2020, over allegations that he received kickbacks through a ₹600 crore loan given by Dewan Housing Finance Limited (DHFL) to a company owned by his family members.

The CBI has filed several other cases against the banker linked to alleged irregularities in loans approved by Yes Bank during his tenure. In total, Kapoor is facing eight pending cases against him.

Rana Kapoor’s lawyer Rahul Agarwal said they are working to complete the bail requirements so that Kapoor can be released from jail as soon as possible. The current case accuses Kapoor of illegally receiving a valuable property in New Delhi from Avantha Realty at a price much lower than the actual market value. This property was allegedly given to Kapoor in exchange for granting concessions, relaxations, and waivers on the existing credit facilities and loans that Yes Bank had previously provided to the Avantha real estate group.

In the case filed by the Enforcement Directorate (ED) related to Avantha Realty, the special court granted bail to Rana Kapoor in 2022. The court noted that the ED had not shown any “active approach” to initiate trials in cases that have been pending for a long time. The court considered the time Kapoor had already spent in jail, despite the trial in this case not having commenced yet.

The court allowed Kapoor to be released on bail upon executing a personal bond of Rs 2 lakh, along with other conditions. Kapoor’s lawyer Rahul Agarwal stated that the process of completing the bail requirements is underway, and Kapoor may be released from Taloja Central Prison, where he has been lodged since 2020, either on Friday or Saturday.