The Enforcement Directorate (ED) has alleged a “quid pro quo” arrangement between former Yes Bank Managing Director and CEO Rana Kapoor and Reliance Group chairman Anil Ambani, which allegedly resulted in substantial financial losses to Yes Bank. According to ED sources, the dealings involved preferential lending and investments that were not commercially viable.
Investigators claim that Yes Bank’s exposure to the Anil Dhirubhai Ambani Group (ADAG) rose sharply during Kapoor’s tenure. From around ₹6,000 crore as of March 31, 2017, the exposure allegedly doubled to nearly ₹13,000 crore by March 31, 2018, raising serious concerns about risk assessment and governance at the bank.
During the same period, Yes Bank is alleged to have invested more than ₹5,000 crore in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL), both ADAG group companies. ED sources stated that a significant portion of these investments later turned into non-performing investments, severely impacting the bank’s financial health.
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The ED estimates that Yes Bank suffered losses of approximately ₹3,300 crore due to these transactions. Investigators allege the investments were part of a quid pro quo, wherein ADAG companies extended loans to firms allegedly controlled by members of Rana Kapoor’s family in return for Yes Bank’s financial support.
According to the agency, Kapoor and Ambani held private meetings without the presence of senior Yes Bank officials, where these arrangements were allegedly discussed. ED sources further claim that Kapoor subsequently directed bank officials to clear proposals that lacked commercial merit.
The probe has intensified in recent months, with the ED attaching immovable properties worth ₹1,400 crore belonging to the Anil Ambani Group under a fresh provisional attachment order. This has taken the total value of assets attached by the agency against the group to nearly ₹9,000 crore. Anil Ambani has also skipped multiple ED summons related to the ongoing investigation under the Foreign Exchange Management Act (FEMA).
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