Thread by @KanchanGupta

'Money Laundering and Terrorist Financing in the Art and Antiquities Market' report by Financial Action Task Force, global money laundering and terrorist financing watchdog, cites case of Yes Bank CMD Rana Kapoor purchasing painting from Priyanka Gandhi at inflated price.
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Here is how #FATF presents ED's case on Kapoor buying painting from Priyanka Gandhi as an example of 'Money Laundering and Terrorist Financing':
"The below case, for example, takes advantage of the price volatility of some cultural objects."
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"This can be done with art of no or little value, together with false sales/false auction, or under/over-pricing. The case revealed that the suspect bought art of no actual value at a price of $264000 from a close associate of a corrupt politician in order to pay kickbacks."
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"Mr. A was MD and CEO of an Indian bank who misused his position during his tenure. He sanctioned loans of the rupee equivalent of USD 628 million to business entities incurring losses or with negative credit, deliberately violating existing norms and regulations."
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"A money laundering investigation revealed that Mr. A used his influence to sanction loan to a loss incurring entity, Company B. Investigations revealed Company B diverted the loan to 79 shell companies including Company C, controlled and owned by Mr. A and his daughters."
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"Company C received $79 million and used part of the funds to purchase assets including art from famous painters and influential people. Mr. A invested a significant amount of proceeds in buying art of famous artists. He had purchased around 44 paintings."
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"Mr. A had received awards and accolades from several organisations in inappropriate ways. Investigation revealed in order to pay kickbacks for receiving awards, Mr. A purchased mediocre art from politicians and in turn paid huge kickbacks through banking channels..."
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"Mr. A purchased a piece of art from the close relative of a member of the ruling political party at that time for $264000. However, the investigation revealed that this was an over-valuation."
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"The price (paid by Mr. A for the painting) was not for art, but rather was a bribe to influence the awarding of the prestigious Indian award ‘Padma Bhushan’ for himself. The trial is ongoing and Mr. A has been in judicial custody since March 2020."
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Painting in question is a portrait of Rajiv Gandhi by MF Hussain. He gifted the painting to Rajiv in 1985. Rajiv Gandhi was Prime Minister at the time when he received the gift. It should have gone to the Toshakhana as per law.
Instead, he kept it; Priyanka sold it.
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