Co-founder and former CEO of crisis-hit Yes Bank, Rana Kapoor has been arrested by the the Enforcement Directorate (ED) under provisions of the Prevention of Money Laundering Act (PMLA) in the early hours of Sunday, officials said.

The arrest followed almost 20 hours of questioning by the ED officials.

Kapoor has been charged with money laundering, and has not been co-operating in the probe, officials said. His residence had been raided on Friday night, hours after the RBI had placed Yes Bank under moratorium and capped deposit withdrawals at Rs 50,000.

Kapoor will be produced before the Prevention of Money Laundering court around 11 in the morning to obtain custody, the officials said.

The ED is investigating Kapoor's role in connection with the disbursal of a loan to a corporate and allegedly taking kickbacks in his wife's accounts. The agency is also probing other irregularities, officials said.

The case against Kapoor is also related to the DHFL probe as Yes Bank had loaned money to the Kapil Wadhwan-promoted non-banking finance company.

Yes Bank's exposure to DHFL through short term debentures between April-July 2018 was Rs 3700 crore. DHFL had sanctioned a loan of Rs 600 crore to Doit Urban Ventures, which was reportedly controlled by the Rana Kapoor family.

Earlier on Friday, the State Bank of India (SBI) said it will pick up a 49% stake in Yes Bank under a government-approved bailout plan, with Finance Minister Nirmala Sitharaman assuring depositors that their money is safe.

First Published:Mar 8, 2020 8:25 AM IST