ED questions Yes Bank co-founder Rana Kapoor in alleged Anil Ambani group money laundering probe
NEW DELHI: The Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor in connection with an alleged money laundering case involving Reliance Anil Ambani Group (ADAG) companies, with the agency claiming that a quid pro quo arrangement caused substantial losses to the private lender. The Enforcement Directorate questioned Yes Bank co-founder Rana Kapoor as part of a money laundering investigation into Reliance Anil Ambani Group (ADAG) companies on Monday, the agency said. Kapoor reached the ED headquarters late in the morning to join the investigation. His statement is being recorded under the Prevention of Money Laundering Act (PMLA), a senior officer said, adding that Kapoor and industrialist Anil Ambani allegedly entered into a quid-pro-quo arrangement that resulted in significant losses for Yes Bank. While Rana Kapoor was at the helm of Yes Bank, the bank had a significant exposure of about Rs 6,000 crore to Reliance Anil Ambani Group as on March 31, 2017. This exposure allegedly doubled to around Rs 13,000 crore by March 31, 2018. During this period, Yes Bank invested over Rs 5,000 crore in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL), both ADAG group companies. A large portion of these investments subsequently turned into non-performing investments (NPI). The bank is said to have suffered a loss of approximately Rs 3,300 crore from these dealings. These were not standard business transactions but a quid-pro-quo, an agency official said. In exchange for Yes Banks investments, ADAG companies allegedly granted loans to firms controlled by Rana Kapoors family members. Rana Kapoor and Anil Ambani held private business meetings, often without other Yes Bank officials present, to agree on these illegal arrangements. Rana Kapoor then instructed Yes Bank officers to process the non-genuine proposals, the official said. Officials said the questioning of Rana Kapoor is part of a wider investigation into alleged criminal conspiracy, abuse of official position and financial misconduct, and that further questioning may be carried out as the probe progresses. Apart from the ED, Anil Ambani group companies are also under the scanner of the Central Bureau of Investigation (CBI) and the Securities and Exchange Board of India (SEBI). Recently, the ED placed a lien on and froze Rs 77.86 crore in bank accounts of Anil Ambani-led Reliance Infrastructure, alleging violations of the Foreign Exchange Management Act (FEMA). The action was linked to the JaipurReengus highway project. Earlier this month, the CBI booked Jai Anmol Ambani, Anil Ambanis son, in connection with the alleged cheating of Union Bank of India of Rs 228.06 crore.
11 C
