A special court dealing with Prevention of Money Laundering Act (PMLA) cases had on January 27 this year remanded Kapoor to ED custody till January 30, 2021.
Kapoor was arrested for allegedly sanctioning a loan of over ₹200 crore to Mack Star Marketing Private Limited, a company owned by Housing Development and Infrastructure Limited (HDIL) promoters Rakesh and Sarang Wadhawan, when he was Chairman of Yes Bank. The ED claimed that Mack Star diverted the loan amount to HDIL, which in turn was used to settle its loan with Yes Bank.
Appearing for the ED, Advocate Hiten Venegaokar submitted to the Court that HDIL mortgaged the properties to Yes Bank against which it took ₹203 crore, and this money was taken for refurbishing or repairing newly constructed properties.
Source: Barandbench
