Rana Kapoor

Rana Kapoor (born September 9, 1957) is an Indian former banker who is currently in jail for accusations of money laundering.[3] He is a co-founder, and former managing director and CEO of Yes Bank, an Indian private sector bank, with its registered office in Mumbai. He was arrested on March 8, 2020 by the India's Enforcement Directorate over accusations of fraud worth over $100 million.[4]

Rana Kapoor
Kapoor in 2012
Born (1957-09-09) 9 September 1957[1]
New Delhi, India
NationalityIndian
Alma materUniversity of Delhi
Rutgers University
Net worth>$1billion (2017)
US$377 million (July 2019)[2]
TitleCo-founder, Yes Bank
Spouse(s)Bindu Kapoor
Children3 daughters

Early life and education

Kapoor was born on September 9, 1957 and was brought up in New Delhi, India.

He attended the Frank Anthony Public School in New Delhi in 1973 and went on to earn Bachelor of Arts degree from Shri Ram College of Commerce in 1977.[5] He then obtained an MBA from Rutgers University in New Jersey, US in 1980.[6] Kapoor received an honorary fellowship from All India Management Association (AIMA), President's Medal from Rutgers University, and an honorary Ph.D. from GB Pant University of Agriculture & Technology.[7][8]

Banking career

In 1980, Kapoor joined Bank of America (BoA) as a management trainee. In 1990 he was presented the Eagle Pin by the chairman. He eventually went on to head the wholesale banking business which included several assignments in Asian countries. Kapoor worked at BoA for about 16 years, till 1996, managing corporate, government and financial institution clients. He was awarded the chief executive officer's award by the chairman for his performance. In 1996, Kapoor joined ANZ Grindlays Investment Bank (ANZIB) as general manager & country head.[9] He worked there for two years, until 1998.

In February 1995, a team from Rabobank arrived in India, scouting for opportunities.[9] Kapoor, his brother-in-law Ashok Kapoor and Harkirat Singh made a proposal to the visiting team for two joint ventures: a non-banking financial company and a bank. During the next year, Kapoor held meetings with the Rabobank executives in India, Singapore and the Netherlands. The NBFC was set up in 1997, with the three Indian partners chipping in with an equity capital of ₹ 9 crore each. In 2003, the three sold their stake for $10 million each, generating the seed fund for the bank.[9] In 2003, the team was granted a banking license by the Reserve Bank of India (RBI) to set up Yes Bank. They established Yes Bank with the vision of "Building the Best Quality Bank of the world in India" by 2015. Rana Kapoor held 26% stake in Yes Bank, Ashok Kapur held 11%, and Rabobank International held 20% stake.[10] Ashok Kapur died in 2008 in Mumbai 26/11 attacks.[11]

In 2005, Kapoor was named Ernst & Young's Start-up Entrepreneur of the Year.[12]

In January 2017, Bloomberg noted that with the rising share price of Yes Bank, Kapoor had become a billionaire.[13]

In September 2018, Yes Bank announced that they had ordered Kapoor to step down from his CEO position in January 2019. In July 2019, the Times of India reported that with a 78% drop in the Yes Bank share price since August 2018, Kapoor's net worth had fallen by over a billion to $377 million.[2]

Fraud and arrest

On March 8, 2020, the Enforcement Directorate (ED) registered a case against Kapoor under the Prevention of Money Laundering Act (PMLA) and he was arrested.[14] The Central Bureau of Investigation (CBI) also charged Kapoor and his family members in a bribery and money-laundering case linked to Yes Bank.[15] Kapoor denies the charges.[16]

According to the ED, Kapoor, his family members, and others, got benefits worth Rs 4,300 crore through companies controlled by his family as kickbacks for sanctioning huge loans through Yes Bank. He is also accused of receiving bribes for going easy on loans given to a few big corporate groups that had turned into non-performing assets.[17]

The CBI and ED arrested Kapoor in another case which is the outcome of their investigations in DHFL Mumbai case of fraud and embezzlement of over $3 Billion,[18] in which Kapoor was alleged to have received over $100 million in kickbacks over bogus loans extended by Yes Bank to DHFL and the kickbacks were used to purchase expensive properties in Delhi and Mumbai in the name of Kapoor's wife Bindu Kapoor and daughter Roshni Kapoor.[19]

In May 2020, ED filed a charge sheet and named 7 individuals and 5 companies Individuals: • Rana Kapoor • Bindu Kapoor (W/o Rana Kapoor) • Roshni Kapoor (Daughter of Rana Kapoor) • Radha Kapoor (Daughter of Rana Kapoor) • Rakhee Kapoor (Daughter of Rana Kapoor) • Dheeraj Wadhawan (DHFL promoter) • Pankaj Wadhawan (DHFL promoter)

Companies: • Morgan Credit Pvt. Ltd (MCPL) – a “promoter company of Yes Bank” and owned by Rana Kapoor’s daughters. • Yes Capital Pvt. Ltd (YCPL) – a “promoter company of Yes Bank” and owned by Rana Kapoor’s daughters. • RAB Enterprises was an investment company & owned by Rana Kapoor’s wife. • Dewan Housing Finance Limited • RKW Developers – owned by Dheeraj Wadhawan [20]

Currently Kapoor is lodged at Taloja Jail, Maharashtra.[21] Kapoor's bail application in the Prevention of Money Laundering case filed on the grounds that he is keeping poor health and is at the risk of contracting COVID-19, was rejected by Mumbai Court in April 2020.[22]

Personal life

Kapoor resides in Mumbai and is married to Bindu Kapoor. They have three daughters, Radha Kapoor Khana, Rakhee Kapoor Tandon, and Roshini Kapoor.[23] The CBI named his wife, Bindu, and all three daughters, as co-accused in the 2020 case of money laundering.[24]

Ashok Kapur, with whom Kapoor co-founded Yes Bank, was also his wife's brother-in-law.[25]

References
  1. Geoff Hiscock (2007). India's global wealth club (illustrated ed.). John Wiley and Sons. p. 255. ISBN 978-0-470-82238-8.
  2. "Yes Bank founder Rana Kapoor's wealth shrinks by $1 billion". Times of India. 18 July 2019. Retrieved 31 October 2019.
  3. "I may contract coronavirus in jail, grant me bail: Rana Kapoor". The Economic Times. 26 March 2020. Retrieved 26 April 2020.
  4. Rajput, Rashmi; Yadav, Jaikishan (9 March 2020). "ED arrests Yes Bank founder Rana Kapoor; daughter stopped at Mumbai International Airport". The Economic Times. Retrieved 26 April 2020.
  5. "LUNCH WITH BS: Rana Kapoor". 14 June 2013.
  6. "Profile: Rana Kapoor". Banking Technology Conference & Expo. Indian Banks' Association. Archived from the original on 19 April 2010. Retrieved 20 June 2010.
  7. "Career timeline of Yes Bank co-founder Rana Kapoor". 21 September 2018.
  8. "Rana Kapoor MD & CEO, YES BANK". Retrieved 23 September 2019.
  9. Bhandari, Bhupesh (8 March 2005). "Lunch with BS: Rana Kapoor". Business Standard India. Business Standard. Retrieved 20 June 2010.
  10. "Rana Kapoor to exit Rabo, take up Yes Bank reins". Rediff.com. 6 November 2003. Retrieved 20 June 2010.
  11. "Late Ashok Kapur". Times Of India. 28 November 2008. Retrieved 13 August 2012.
  12. "The harder you work, the luckier you get". Rediff.com. 15 March 2010. Retrieved 20 June 2010.
  13. Sterling Wong. "India Just Got a New Billionaire Thanks to Soaring Bank Shares". Bloomberg. Retrieved 28 January 2017.
  14. "ED registers money laundering case against Rana Kapoor". Mint. Retrieved 8 March 2020.
  15. "Crisis-Hit Yes Bank Founder Rana Kapoor's Wife, Daughters Charged By CBI". NDTV. 9 March 2020.
  16. "Yes Bank's rescue deepens worries about Indian finance". The Economist. 14 March 2020.
  17. "No relief for Yes Bank founder Rana Kapoor, court rejects interim bail plea". The Financial Express. 3 April 2020. Retrieved 26 April 2020.
  18. "What is the DHFL Scam?". www.managementstudyguide.com. Retrieved 19 April 2020.
  19. "The Usual Suspect- Business News". www.businesstoday.in. Retrieved 19 April 2020.
  20. "The YES Bank Fraud case: A story full of tragedies". Sure Shot Finance. 12 July 2020. Retrieved 12 July 2020.
  21. Mar 21, Rebecca Samervel | TNN | Updated; 2020; Ist, 11:05. "Yes Bank's Rana Kapoor sent to Taloja jail | Mumbai News - Times of India". The Times of India. Retrieved 19 April 2020.CS1 maint: numeric names: authors list (link)
  22. "Yes Bank founder Rana Kapoor's interim bail plea rejected". The Economic Times. 3 April 2020. Retrieved 19 April 2020.
  23. "Radha, Rakhee & Roshini". Weddingsutra.com. Retrieved 4 April 2012.
  24. "The three Kapoor sisters who said 'no' to banking are now in the dock with Yes Bank crisis". Business Insider. Retrieved 26 April 2020.
  25. "THE STORY OF YES BANK - MORE THAN A SOAP OPERA". www.sptulsian.com. Retrieved 26 April 2020.
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