The CBI on Thursday filed chargesheets in two cases alleging fraudulent transactions between Anil Ambani’s Reliance Group companies and Yes Bank under its former CEO Rana Kapoor. The chargesheet also named members of Kapoor’s family.
The cases concern Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL), both part of Ambani’s Anil Dhirubhai Ambani Group (ADA) and Yes Bank along with entities owned by Kapoor’s wife Bindu Kapoor and daughters Radha Kapoor and Roshni Kapoor.
What was the case against Ambani and Rana?
According to the chargesheets, Ambani, then chairman of ADA Group and a director of Reliance Capital Ltd, conspired with Kapoor to funnel Yes Bank’s funds into debt-ridden Reliance firms, causing substantial losses to the private lender.
Yes Bank’s Chief Vigilance Officer had filed complaints in 2022, leading to two criminal cases against Kapoor, RCFL, RHFL and others. Investigators allege that in 2017, Yes Bank invested about Rs 2,045 crore in RCFL and another Rs 2,965 crore in RHFL through non-convertible debentures and debt instruments. These approvals were cleared despite Care Ratings having placed ADA Group companies “under watch” due to worsening finances.
Funds siphoned off through multiple layers, says CBI
The CBI claims the funds were siphoned off through multiple layers, demonstrating “systematic diversion of public money”. In exchange, RCFL and RHFL allegedly extended concessional loans and facilities to unprofitable firms linked to Kapoor’s family, creating what investigators describe as a quid pro quo arrangement.
The probe estimates a wrongful loss of Rs 2,796.77 crore to Yes Bank and a corresponding gain to ADA Group companies and Kapoor family entities.
The chargesheets also point to Reliance Nippon Mutual Fund, a Reliance Capital subsidiary, which, acting on Ambani’s instructions, invested Rs 1,160 crore in debentures of Morgan Credits Pvt Ltd — a Kapoor family-owned company — during 2017-18, PTI reported.