Mumbai Court Grants Bail to Yes Bank Founder Rana Kapoor in Rs 400 Crore Loan Case

Mumbai court grants bail to Yes Bank founder Rana Kapoor, criticizing CBI for solely targeting him in a Rs 400 crore loan case, citing lack of direct evidence and concerns over pre-trial conviction.

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Rafia Tasleem
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Mumbai Court Grants Bail to Yes Bank Founder Rana Kapoor in Rs 400 Crore Loan Case

Mumbai Court Grants Bail to Yes Bank Founder Rana Kapoor in Rs 400 Crore Loan Case

In a significant development, a Mumbai special court granted bail to Yes Bank founder Rana Kapoor on Friday, criticizing the Central Bureau of Investigation (CBI) for solely targeting him in a Rs 400 crore loan case involving Avantha Reality Limited. The court's decision comes despite evidence suggesting minimal loss to the bank.

The court noted that the CBI failed to establish a direct link between Kapoor and the alleged fraud, and that the agency had not investigated other individuals who may have been involved. "The CBI's case against Kapoor was not strong enough and the agency had failed to establish a direct link between Kapoor and the alleged wrongdoing," the court observed.

The court also highlighted that the CBI placed the entire blame on Kapoor and it was not right to arrest and jail him for four years. "There was no substance in the CBI's allegations against Kapoor and the ED case named other decision makers, raising concerns about the CBI's selective targeting of Kapoor," the court stated.

Kapoor has been in jail since March 2020 after being arrested by the Enforcement Directorate (ED) in a money laundering case. The court's decision to grant him bail was seen as a setback for the CBI's investigation into the case.

The court further noted that the loan was sanctioned unanimously by the management credit committee and that the bank had recovered the entire outstanding amount from the sale of the property. It also considered Kapoor's prolonged incarceration without trial and the fact that others involved in the loan decision were made witnesses instead of the accused.

Why this matters: The court's observations shed light on the complexities of legal proceedings in cases involving financial crimes and the rights of the accused. The decision reflects the judiciary's commitment to upholding justice while ensuring the protection of individual rights in the face of complex financial allegations.

The court cited delays in the judicial process and the Chief Justice of India's concerns over lower courts being reluctant to grant bail, stating that Kapoor's continued detention would amount to a pre-trial conviction. "The right to a speedy trial is a fundamental right of an undertrial prisoner, and no undertrial prisoner should be detained without trial for an indefinite period," the court emphasized. Kapoor's lawyer said they were working to complete the bail formalities to facilitate his release as soon as possible, as Kapoor has now secured bail in all the cases he was booked in related to fraud at the bank.

Key Takeaways

  • Mumbai court granted bail to Yes Bank founder Rana Kapoor, criticizing CBI's targeting.
  • The court found CBI's case against Kapoor not strong enough, with no direct link to the alleged fraud.
  • The court noted CBI placed the entire blame on Kapoor, raising concerns about selective targeting.
  • The court cited delays in the judicial process, says Kapoor's detention amounted to a pre-trial conviction.
  • Kapoor secures bail in all cases related to fraud at Yes Bank, set to be released soon.