InvestorQ : Why has the ED attached the apartment belonging to Rana Kapoor in London?
shrinidhi Rajan made post

Why has the ED attached the apartment belonging to Rana Kapoor in London?

9 months ago

The Enforcement Directorate or the ED attached a Rs.127 crore apartment owned by Rana Kapoor in London. It is alleged that Rana Kapoor had bought this apartment out of funds laundered out of Yes Bank, which is currently being investigated by ED.

ED has issued a provisional order for attaching the apartment at South Audley Street, London under the Prevention of Money Laundering Act or the PMLA. The property was purchased by Rana Kapoor in 2017 for a consideration of £9.9 million or Rs.93 crore.

The urgency to attach the property was evident from the fact that Kapoor had apparently appointed real estate consultants to ring fence the property from his other assets and plan a sale of the same. The property had been listed in several websites for sale.

The next step is for the ED to approach its counterpart in UK to give effect to the attachment order and will subsequently issue a proclamation that the asset cannot be sold or purchased, being seized under the PMLA. ED has used this to earlier attach properties in the US, Dubai and Australia.

It is interesting how this deal had come about. In 2018 Yes Bank had invested Rs.3700 crore in short term debentures of DHFL. At the same time, Kapil Wadhawan paid a kickback of Rs.600 crore as loan to DOIT Urban Ventures, which owns the London property.

Rana Kapoor, Kapil Wadhawan and Dheeraj Wadhawan have already been arrested by the ED in this case and are currently in judicial custody at present. The total attachment of properties in this case as of date stands at Rs.2011 crore.