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The Central Bureau of Investigation (CBI) has filed charge sheets in two high-profile cases involving Anil Dhirubhai Ambani (ADA) Group companies and Yes Bank. The investigation uncovered alleged fraudulent transactions that caused losses exceeding Rs 2,796 crore to Yes Bank while benefitting ADA Group firms and companies linked to the family of former Yes Bank chief Rana Kapoor.
The chargesheets, submitted to a Mumbai court on September 18, center on Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL), both formerly under Anil Ambani’s Reliance Capital.
According to investigators, Yes Bank, under Rana Kapoor, invested heavily in non-convertible debentures and commercial debt of these firms in 2017.
Despite adverse ratings and warnings about ADA Group’s deteriorating financial condition, Yes Bank approved investments of about Rs 2,045 crore in RCFL and Rs 2,965 crore in RHFL. The CBI said these funds were subsequently siphoned off through multiple entities, pointing to a systematic diversion of public money.
The CBI has alleged a conspiracy between Anil Ambani and Rana Kapoor. Kapoor, then CEO of Yes Bank, allegedly directed funds into financially distressed ADA Group companies.
In return, ADA Group firms extended concessional loans and investments to entities linked to Kapoor’s wife, Bindu Kapoor, and daughters, Radha Kapoor and Roshni Kapoor.
According to investigators, RCFL and RHFL provided credit facilities at concessional rates to Kapoor family-owned companies such as RAB Enterprises, Imagine Estate, Bliss House, Imagine Habitat, and Imagine Residence.
This arrangement, the CBI stated, led to wrongful losses of Rs 2,796.77 crore to Yes Bank and corresponding unlawful gains to ADA Group firms and Kapoor-linked entities.
The probe also highlighted the involvement of Reliance Nippon Mutual Funds, another Reliance Capital subsidiary. It invested Rs 1,160 crore in debentures of Morgan Credits Pvt Ltd, a company owned by Kapoor’s family, during 2017-18.
Additionally, the fund purchased ADA Group debentures worth Rs 249.80 crore from Yes Bank and invested Rs 1,750 crore in Yes Bank’s high-risk AT1 bonds, which carried no fixed maturity and were later converted to equity or written off during the bank’s crisis.
Also Read: ED Uncovers Rs. 68 Crore Fake Bank Guarantee Scam Linked to Anil Ambani Group
The CBI has charged Anil Ambani, Rana Kapoor, Bindu, Radha, and Roshni Kapoor, along with ADA Group firms RCFL and RHFL (now Authum Investment & Infrastructure Ltd), and several family-controlled companies, under provisions of the Prevention of Corruption Act and the Bharatiya Nyaya Sanhita.
The case adds to the increasing scrutiny of corporate-banking relationships in India. With the charges filed, hearings should follow as the courts review evidence and assign culpability in one of the most prominent banking fraud cases in the country.
