Yesterday, Rana Kapoor, the co-founder of Yes Bank, was granted bail by a Special Court. This decision comes in relation to a money-laundering case associated with purported financial irregularities within the bank.

Presently, Rana Kapoor won't be released from jail as he hasn't received bail in a connected case filed by the Central Bureau of Investigation.

In March 2020, Rana Kapoor, formerly the Managing Director and CEO of the private bank, was arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).

On Thursday, the Special Judge for the Prevention of Money Laundering Act (PMLA) court, M G Deshpande, granted bail to Rana Kapoor.

The judge emphasized that due to the expectations and guidelines set by the Supreme Court in a separate case, the trial in this particular instance couldn't be initiated and completed within those parameters. Consequently, citing section 436-A of the Code of Criminal Procedure, the judge deemed Rana Kapoor eligible for relief and deserving of bail.

As per Section 436A, an under-trial prisoner holds the right to apply for bail if they have already served more than half of the maximum possible sentence for the offense they are accused of. This provision aims to address the situation where individuals spend a significant duration in custody while the trial progresses, ensuring a fair balance between the legal process and the rights of the accused.

The court highlighted that Rana Kapoor did not initiate any actions to prolong the trial nor did he hinder the Enforcement Directorate's proceedings in this court. Additionally, the Enforcement Directorate did not argue that Rana Kapoor's bail applications were causing delays in their investigation.

In the bail application presented by his advocates Rahul Agarwal and Jasmine Purani, Rana Kapoor stated that he had already spent over three and a half years in prison, which amounts to half the duration of the maximum sentence prescribed for the offense under the Prevention of Money Laundering Act (PMLA).

He emphasized that given the current status of the case, there seemed to be no likelihood of the trial commencing in the near future.

The Enforcement Directorate (ED), however, argued that Rana Kapoor, as one of the primary accused individuals, exploited his position to illicitly amass financial gains amounting to ₹5,050 crore for himself, his family members, and associates. Their contention included allegations of involvement in bribery, corruption, and money laundering.