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The Enforcement Directorate had summoned former YES Bank CEO Rana Kapoor in connection with the ongoing probe into alleged financial irregularities involving industrialist Anil Ambani and companies linked to the Anil Dhirubhai Ambani Group (ADAG). He appeared before investigators at the Enforcement Directorate’s headquarters on Monday.
The ED has so far attached properties, fixed deposits, bank balances, and shareholdings in unquoted investments worth Rs 10,117 crore of the Reliance Anil Ambani Group in the Yes Bank fraud case. According to the ED, the agency detected fraudulent diversion of public money by various Reliance Anil Ambani Group companies, including Reliance Communications Ltd (RCOM), RHFL, RCFL, RIL and Reliance Power Ltd.
According to officials, the investigation focuses on an alleged quid pro quo arrangement between Kapoor and Anil Ambani that is believed to have caused significant losses to Yes Bank. During Kapoor’s tenure, the bank’s exposure to ADAG companies increased sharply, rising from around Rs 6,000 crore as of March 31, 2017, to nearly Rs 13,000 crore by March 31, 2018.
During this period, Yes Bank is alleged to have invested more than Rs 5,000 crore in ADAG-linked entities, including Reliance Home Finance Limited and Reliance Commercial Finance Limited. A substantial portion of these investments later became non-performing, resulting in estimated losses of Rs 3,300 crore for the bank.
Investigators allege that these transactions were not routine business decisions but part of a quid pro quo arrangement. In exchange for Yes Bank’s financial exposure to ADAG companies, loans were allegedly extended to firms controlled by Kapoor’s family members.
The probe has also found that Kapoor and Ambani held several private meetings without the presence of other senior Yes Bank officials, during which the alleged arrangements were finalised. Following these meetings, Kapoor allegedly directed bank officials to process and approve proposals that were allegedly non-genuine. There are also allegations that he did not conform to standard banking norms.
