ED Flags Rana Kapoor - Anil Ambani ‘Quid Pro Quo’ In Yes Bank Dealings: Sources

Former Yes Bank MD and CEO Rana Kapoor and Reliance Group chairman Anil Ambani allegedly entered into a 'quid pro quo' arrangement that caused significant financial losses to Yes Bank, Enforcement Directorate (ED) sources told NDTV Profit.

According to ED sources, while Kapoor was at the helm of Yes Bank, the lender had an exposure of around Rs 6,000 crore to the Anil Dhirubhai Ambani Group (ADAG) as of March 31, 2017. This exposure allegedly doubled to nearly Rs 13,000 crore by March 31, 2018.

During this period, Yes Bank is alleged to have invested over Rs 5,000 crore in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL), both ADAG group companies. ED sources said a substantial portion of these investments later turned into non-performing investments (NPIs).

The bank is estimated to have suffered losses of approximately Rs 3,300 crore from these transactions, according to the agency.

ED sources allege that these were not routine commercial dealings but part of a “quid pro quo” arrangement. In return for Yes Bank’s investments, ADAG group companies allegedly extended loans to entities controlled by members of Rana Kapoor’s family.

The agency further claims that Kapoor and Ambani held private business meetings, often without the presence of other senior Yes Bank officials, during which these arrangements were discussed. ED sources allege that Kapoor subsequently directed bank officials to process proposals that were not commercially viable.

Last month, the ED seized immovable properties worth Rs 1,400 crore belonging to the Anil Ambani Group, NDTV had reported citing sources.

The properties were attached under a fresh provisional attachment order. With this action, the total value of assets attached by the economic intelligence agency against the group has risen to around Rs 9,000 crore.

Anil Ambani also did not appear before the ED for questioning, despite being summoned in connection with an ongoing investigation under the Foreign Exchange Management Act (FEMA). This marked the second instance of Ambani skipping an ED summon.