Cong dismisses Yes Bank co-founder's allegation as 'political vendetta'

The Congress on Sunday termed as "political vendetta" the allegation by Yes Bank co-founder Rana Kapoor who has told the Enforcement Directorate that he was "forced" to buy an M F Husain painting from party leader Priyanka Gandhi Vadra and questioned his and the ED's credibility.

New Delhi: The Congress on Sunday termed as "political vendetta" the allegation by Yes Bank co-founder Rana Kapoor who has told the Enforcement Directorate that he was "forced" to buy an M F Husain painting from party leader Priyanka Gandhi Vadra, and questioned his and the ED's credibility.

Kapoor has told the ED that he was "forced" to buy the M F Husain painting from Priyanka Gandhi and the sale proceeds were utilized by the Gandhi family for the medical treatment of Congress president Sonia Gandhi in New York, according to the charge sheet filed by the federal anti-money laundering agency in a special court in Mumbai.

He told the Enforcement Directorate (ED) that he was told by the then petroleum minister Murli Deora that the refusal to buy the painting will not only prevent him from building a relationship with the Gandhi family but also prevent him from getting the 'Padma Bhushan' award. Kapoor also told the agency that Ahmed Patel, a close confidante of Sonia Gandhi, had told him that by supporting the Gandhi family at an opportune time for medical treatment of Sonia Gandhi, "I (Kapoor) had performed a good deed for the family and it would be duly considered for the 'Padma Bhushan' award".

Asked about the allegations at a press conference, Congress spokesperson Abhishek Manu Singhvi said, "This is absolutely astonishing. I don't want to use a strong word, it is absolutely disgusting that a 2010 transaction, a person who is behind bars for years, whose 20-30 bail applications have been rejected, who is called a crook and a fraudster, makes allegations about dead people and the government is jumping with joy only because it suits their political angle."

The government wants to keep the pot boiling for 2022, for a transaction in 2010 when neither Murli Deora nor Ahmed Patel is here to deny it, Singhvi said. "What is the objective of this, is it the result of your (government) pressure tactics and coercion on a person behind bars eager to get his freedom to record statements against political opponents and to keep a 12-year-old thing boiling just for the convenience of politics," the Rajya Sabha MP said, hitting out at the government.

However, BJP IT Cell head Amit Malviya alleged that it is quite clear from Rana Kapoor's confession to the ED that the Gandhis and the Congress are not just "extortionists but were also selling the country's highest civilian honor to the highest bidder or durbaris, who did their bidding". In his response to the allegations, Singhvi cited that in March 2014, the Yes Bank loan book stood at Rs 55,000 crore, and in March 2019, it had increased nearly five times to Rs 2.41 lakh crore.

"The loan book of Yes Bank also showed a very dramatic increase between two other dates which are very inconvenient for the Modi government which neither the government nor the prime minister talks about anymore. In March 2016, it was Rs 98,000 crore and in March 2018, it became 2.03 lakh crore, about more than double. Remember when demonetization happened, November 2016," he said.

Singhvi also pointed out that the BJP-led Haryana government invested Rs 2,500 crore as government money into accounts of a "sinking" Yes Bank. "They are trying to create a fear psychosis to scare people to do political vendetta, they should know better than that. At least spare the dead. At least don't defame people like Deora and Ahmed Patel," he said.

"We all know the credibility of the ED and more than that the credibility of the person accused in this case who is supposed to have made this statement," he added. The statements of Rana Kapoor are part of the second supplementary charge sheet (overall third) filed in the special court recently against the Yes Bank co-founder, his family, Dewan Housing Finance Limited (DHFL) promoters Kapil and Dheeraj Wadhawan, and others in a money laundering case.

Stating that he had paid a cheque of Rs 2 crore, Kapoor claimed that "Milind Deora (son of the late Murli Deora and former Congress MP) later conveyed to him confidentially that the sale proceeds were utilized by the Gandhi family for the medical treatment of Sonia Gandhi in New York". Kapoor is currently in judicial custody following his arrest in the case in March 2020. The Wadhwa too are in jail custody after their arrest in another case.

Singhvi also slammed the Centre over a reported proposal of rate rationalization under the GST regime to bolster revenues, alleging that the government was acting in a "deceitful, dubious and dissembling" manner with the people, especially the middle class.

The attack by the Congress came over a media report which said that as part of a proposed rate rationalization under the Goods and Services Tax (GST) regime to bolster revenues, the GST Council, the governing body for the indirect tax regime, has sought views of states for hiking rates on 143 items. Of these 143 items, 92 percent are proposed to be shifted from the 18 percent tax slab to the top 28 percent slab, the report said.

However, sources said the GST Council has not sought views from states on hiking tax rates. They said that the panel of ministers looking into GST rate rationalization is yet to submit its report to the Council. The sources also said there is also no proposal to shift more than half of the items to the highest tax GST slab of 28 percent.

(With agency inputs)