Dozen shell firms, paintings of politicians under lens

New Delhi, March 8: Investments worth over Rs 2,000 crore, 44 expensive paintings and a dozen alleged shell firms are at the heart of ED's investigations against Yes Bank founder Rana Kapoor, officials said.

The agency, they said, has also recovered documents that show some assets of the Kapoor family in London and the source of funds for their acquisition is being investigated. The ED, which began action against the banker by raiding his upscale residence in south Mumbai on Friday is primarily investigating Kapoor, his wife and three daughters over a Rs 600-crore fund received by a firm allegedly "controlled" by them from an entity linked to DHFL. The Kapoor's linked firm, DoIT Urban Vent-ures (India) Pvt Ltd, is alleged to have received the funds when Yes Bank had a exposure of more than Rs 3,000 crore loans to DHFL.

The bank allegedly did not initiate action to recover the NPA-turned loans from DHFL and the agency suspects that the Rs 600 crore funds were part of a kickback.

The ED, officials said, is looking at finding the proceeds of crime during the raids conducted at Kapoor's residence and those of his wife Bindu and three daughters. It has stumbled upon investments worth over Rs 2,000 crore by the family and the active presence of about a dozen shell or dummy firms used to rotate alleged kick backs.

It has also stumbled upon 44 expensive paintings purchased by the family, some of which were allegedly purchased from politicians.