ED Questions Rana Kapoor: The Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor in connection with the ongoing investigation under the Prevention of Money Laundering Act (PMLA), which focuses on alleged financial transactions linked to Anil Ambani group companies. According to officials, this investigation mainly pertains to the period from 2017 to 2019, when Yes Bank had made large-scale investments in Reliance Anil Ambani group companies.

Rana Kapoor interrogated again

ED says that during this period, Yes Bank invested about Rs 2,965 crore in Reliance Home Finance Limited (RHFL) and about Rs 2,045 crore in Reliance Commercial Finance Limited (RCFL), out of which an amount of Rs 1,353.5 crore was found outstanding on RHFL and Rs 1,984 crore on RCFL.

According to the investigating agency, these two companies together had received public funds worth more than Rs 11,000 crore. ED also claimed that before Yes Bank made investments in Anil Ambani group companies, the bank had received huge amounts of money from its erstwhile Reliance Nippon Mutual Fund.

Screw tightened in money laundering case

The agency alleges that due to conflict of interest under SEBI rules, Reliance Nippon Mutual Fund could not directly invest or transfer funds in the financial companies of Anil Ambani group, so the public’s mutual fund investments were allegedly routed to these companies through Yes Bank through an indirect route.

ED believes that Rana Kapoor is being interrogated to understand this suspicious structure and flow of money, so that it can be found out how public funds were misused and money laundered.

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Anil Ambani News: Veteran industrialist Anil Ambani’s troubles are showing no sign of abating. Now the Central Bureau of Investigation (CBI) has made another shocking revelation about him. The CBI charge sheet against Anil Ambani’s Reliance ADA Group and Yes Bank co-founder Rana Kapoor has alleged transactions between the companies of the two families.

Big revelation in CBI charge sheet

According to the Economic Times (ET) report, the charge sheet also states that Ambani’s son Jai Anmol Ambani was involved in some decisions related to these transactions. The chargesheet, filed in 2022, is based on two criminal cases filed by the Chief Vigilance Officer of Yes Bank against former Yes Bank MD and CEO Rana Kapoor and Reliance Group’s Reliance Commercial Finance Limited (RCFL), Reliance Home Finance Limited (RHFL) and others.

The investigation found that Yes Bank invested Rs 2,045 crore in debentures and commercial papers of RCFL and Rs 2,965 crore in RHFL in 2017, which were approved by Rana Kapoor, while Care Ratings had placed ADA Group under observation due to its weak financial position. Later this amount was diverted at many levels, due to which public money was misused.

money transaction between two

CBI says that during that period, several money transactions took place between ADA Group companies, Yes Bank and Reliance Nippon Asset Management. On one hand, ADA Group companies received funds from Yes Bank and on the other hand, Yes Bank made a major investment in its capital instruments from Reliance Nippon Mutual Fund (RNMF), which at that time was a subsidiary of Reliance Capital along with Nippon Life Insurance of Japan.

RNMF also invested Rs 1,160 crore in debentures of Kapoor family company Morgan Credits Private Limited in 2017-18. Additionally, it purchased ADA Group debentures worth Rs 249.80 crore from Yes Bank and invested Rs 1,750 crore in unsecured AT1 bonds of Yes Bank, which can be converted into equity or written-off during the financial crisis.

In this way, Ambani and Kapoor together created a system by which both could help each other financially and maintain a flow of money. The investigation found that Rana Kapoor and Anil Ambani together diverted the funds received from Yes Bank to the financially weak ADA Group companies. In return, ADA Group provided low-interest loan facilities and investments to the companies of Kapoor’s wife Bindu Kapoor and daughters Radha and Roshni Kapoor.

Anil Ambani’s son’s name also surfaced

The chargesheet also stated that Ambani’s son Jai Anmol Ambani directly influenced the investment decisions in RNMF while the company was preparing to be listed on the stock exchanges. CBI says that RNMF had huge funds received from common investors, which it could have invested in long-term debt instruments. However, market regulator SEBI regulations prevent mutual funds from investing in long-term debt investments.

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CBI Files Chargesheet Against anil Ambani: In the bank fraud case of about 2.8 thousand crore rupees, the legal grip of the central investigative agencies has intensified. The CBI on Thursday filed a charge sheet in Mumbai’s special court against several companies including Anil Dhirubhai Ambani, Yes Bank co-founder Rana Kapoor, his wife Bindu Kapoor and daughters Radha and Roshni.

It is alleged from the CBI that despite the warning of credit agencies, the companies of Anil Ambani Group were invested on a large scale and the Yes Bank was damaged. Earlier, the CBI has also investigated against DHFL promoters Kapil Wadhavan and Dheeraj Wadhawan in the Yes Bank Loan Fraud case. This case is now going on in court under Criminal Conspiracy and Banking Fraud.

Increased screws of central agencies

The CBI had registered the case in 2022, with the main allegations that in 2017, on the instructions of Rana Kapoor, Yes Bank invested extensively in ADA group companies RCFL and RHFL, while credit rating agencies warned of their financial performance. It is alleged that these investments were later used to withdraw the benefits of “multi-layer” money, in which the bank lost crores of rupees.

The charge sheet has been approved in a special court in Mumbai. At present, no discharge petition of any accused in this case has been heard, because the charge sheet has been served. The court process is now in the beginning stage, which will include evidence of allegations, investigation of documents and reaction by the accused side. The next court date has not been declared publicly, but there are possibilities that the court will soon carry forward the hearing of the case.

What is the charge in the charge sheet?

It is alleged that Yes Bank suffered heavy losses due to collusion between Rana Kapoor and Anil Ambani Group companies. Despite the warning of credit agencies, invested in RCFL (Reliance Commercial Finance Ltd.) and RHFL (Reliance Home Finance Ltd.). The investment amount was allegedly diverted and used by diverting through “Multi-Layred Transactions”. Accused of deliberately bypassing rules in loan approval and investment decisions.

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