Yes Bank founder Rana Kapoor experiences raid in his residence by ED.

On Friday, the Enforcement Directorate raided Yes Bank founder Rana Kapoor’s Mumbai residence in connection with an investigation of money laundering against him and others, officials said.

They said that the raid was carried out in his residence at Samudra Mahal. Also, the officials said Kapoor is being questioned at his house by the ED team.

The action is initiated under the Prevention of Money Laundering Act (PMLA) and is aimed at collecting evidence, they said.

The central agency investigates Kapoor’s involvement in the disbursement of a loan to a company and its supposed bumps in the accounts of his wife.

The case against Kapoor also has connections with the DHFL probe as the banks provide the loans to the company supposedly turned NPAs, said the officials. The agency’s scanner also contains other suspected irregularities, they said.

On Thursday, the Reserve Bank put a freeze on the capital-starved Yes Bank and immediately replaced the private sector lender’s Board by the withdrawals limit of Rs 50,000 per account.

Yes Bank cannot offer or renew a loan, make any investment, incur liability or agree to pay any bill.

The State Bank of India will take 49% share in the crisis-ridden Yes Bank under the government-approved rescue plan, based upon the RBI draft reconstruction scheme.