Yes Bank Co-Founder Rana Kapoor Arrives At ED HQ In Connection With Anil Ambani Fraud Case

Yes Bank Co-Founder Rana Kapoor reached the enforcement directorate’s (ED's) Delhi headquarters after being summoned in connection with the Anil Ambani case. 

As per allegations made by the ED, Kapoor and Ambani entered into a “quid-pro-quo” arrangement that resulted in significant monetary losses to Yes Bank.

Currently, Anil Ambani and his group of companies are under probe for alleged in irregularities in multiple bank loans worth nearly Rs 17,000 crore.

“While Rana Kapoor was at the helm of Yes Bank, the bank had a significant exposure of about Rs 6,000 crore to Reliance Anil Ambani Group (ADAG Group) as on March 31, 2017. The exposure more than doubled to Rs 13,000 crore as on March 31, 2018. During this time, the bank invested over Rs 5,000 crore in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL) which were ADAG Group Companies,” the ED said. 

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According to the economic intellegence agency, a large portion of these investments turned into Non-Performing Investments (NPI). The bank as a direct result of this suffered a loss of nearly Rs 3,300 crore from these dealings. 

Meanwhile, the ED further alleged, “Rana Kapoor and Anil Ambani held private business meetings, often without other Yes Bank officials present, to agree on these illegal arrangements. Rana Kapoor then instructed Yes Bank officials to process the non-genuine proposals,” the ED alleged.

“Before Yes Bank invested this money in Reliance Anil Ambani group companies, Yes Bank had received huge funds from the erstwhile Reliance Nippon Mutual Fund. As per SEBI regulations, Reliance Nippon Mutual Fund could not invest/divert funds directly in Anil Ambani group finance companies due to conflict-of-interest rules,” it said.