Yes Bank case: DHFL promoters refuse to appear for questioning; cite coronavirus

DHFL promoters Dheeraj Wadhawan and Kapil Wadhawan refused to appear before the Enforcement Directorate (ED) for questioning citing health risks due to coronavirus. The DHFL promoters were summoned by the agency for questioning on Tuesday in connection with the Yes Bank case. The promoters told the agency that considering the current scenario in the country, health was top priority.

"In the current environment of the coronavirus, it is a government directive to curtail travel," said Kapil Wadhawan. Dheeraj Wadhawan told the agency in a letter: "Considering the COVID-19 pandemic, and with my already-compromised health and age, I am at high risk, and consequently, for my own health and safety, it is difficult for me to travel to Mumbai. I would request you to appreciate that in today's circumstances in the country, health is a priority."

The ED is investigating DHFL's role in the Yes Bank crisis. The agency is looking into transactions worth Rs 3,700 crore between DHFL and Yes Bank. Investigative agencies have alleged kickbacks of Rs 600 crore by DHFL to the firms of Yes Bank founder Rana Kapoor and family.

Yes Bank had invested Rs 3,700 crore in the short-term debentures of DHFL, which later turned into NPAs. As per the allegations, DHFL's Wadhawan simultaneously paid kickbacks worth Rs 600 crore to the Kapoors in the form of a loan of the similar amount to Doit Urban Ventures. DoIt is owned by Kapoor's daughters -- Rakhee Kapoor Tandon, Roshni Kapoor and Radha Kapoor.

The DHFL promoter also replied to the kickback allegations through a letter. "The allegations with regard to the loans disbursed to DOIT being a kickback to Rana Kapoor are incorrect. As far as I can recall, in respect of the loan of Rs 600 crores, there were six immovable properties that were offered as security and over which mortgages were created. Recognising the risk of enforcing such security, the personal guarantee of Radha Kapoor was taken, as she had a net worth of more than Rs 1400 crores at the relevant time," reads the letter.

According to sources the ED will issue fresh dates for questioning of the Wadhawans soon.

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