Yesterday, 20th April, recent court decision dealt a blow to the CBI’s case against Yes Bank’s former CEO Rana Kapoor. The ruling exposed weaknesses in the evidence presented by the CBI, potentially impacting the trajectory of the case. Kapoor’s legal team is likely to leverage this development in his defense strategy.
Mumbai: In Mumbai, a special court observed the CBI’s emphasis on solely blaming Yes Bank founder Rana Kapoor for loan approvals and criticized the four-year incarceration. Granting bail to Kapoor, the court found the CBI‘s allegations regarding the Rs 400 crore loan to Avantha Reality Limited (ARL) lacking substance, particularly in attributing it solely to Kapoor’s influence at Yes Bank.
The court order, revealed on Saturday, also pointed out that while the Enforcement Directorate’s (ED) case mentions other decision-makers, the CBI’s case singling out only Kapoor as the sole accused raised “concerns about their selective targeting of him.”
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Arrested in March 2020 by the ED in a money laundering case, Kapoor faced eight cases from both the CBI and the ED regarding alleged Yes Bank fraud. Upon receiving bail in the eighth case, Kapoor was released from Navi Mumbai’s Taloja jail on Friday. Special judge MG Deshpande noted that further detaining Kapoor “would amount to pre-trial conviction” due to delays in the judicial process.
The court noted that the CBI’s case, characterized by its “exceptional volume,” connected to a money laundering case still being investigated by the ED. The judge emphasized that without the ED initiating proceedings, the trial of the CBI‘s case cannot start concurrently with the trial of the ED’s case in accordance with the true legal spirit.
The ED still investigating its case, and according to the court,
“Until the probe agency informs the court definitively that their investigation is complete, simultaneous trials of the CBI case with the PMLA special case cannot commence.”
Additionally, the court emphasized,
“The trial cannot commence until the charge is framed.”
The judge remarked,
“The uncertainty surrounding the conclusion of ‘further investigation’ in the case, as noted by the judge, leaves everyone, including the ED, unsure of a definitive timeline,”
The judge further justified Kapoor’s release on bail, citing the years he spent in detention, stating that,
“Itself warrants his release on bail, especially when a timely trial in the instant case is not feasible.”
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The special court judge remarked on the evidence, indicating that,
“Yes Bank did not incur the substantial loss as alleged in the CBI chargesheet.”
Justice Deshpande also cited recent remarks by Chief Justice of India (CJI) DY Chandrachud, who expressed serious concern about lower courts hesitating to grant bail.
Quoting the CJI’s remarks, the special judge stated,
“Failure of this (special) court to uphold the true essence and spirit of these deeply profound words would constitute deception, dishonesty, and fraudulence.”
The CBI accused Kapoor of receiving “illegal gratification” through a property situated in a prime location in Delhi, which priced significantly below its market value in exchange for approving a loan.