Mumbai, Dec 15 The Enforcement Directorate on Monday questioned Yes Bank co-founder Rana Kapoor in connection with a money laundering probe linked to companies of the Reliance Anil Ambani group.
Sources familiar with the matter said Kapoor’s statement was recorded under the Prevention of Money Laundering Act as part of an ongoing investigation into large financial transactions between Yes Bank and group companies during the 2017–2019 period.
According to the probe, Yes Bank had invested around Rs 2,965 crore in instruments of Reliance Home Finance Limited and about Rs 2,045 crore in Reliance Commercial Finance Limited during this period.
Sources further said the outstanding exposure stood at Rs 1,353.5 crore in the case of Reliance Home Finance and Rs 1,984 crore for Reliance Commercial Finance.
“While Rana Kapoor was at the helm of Yes Bank, Yes Bank had significant exposure of about Rs 6000 crore to Reliance Anil Ambani Group (ADAG Group) as on March 31, 2017 and exposure doubled to Rs 13,000 Crore as on March 31, 2018,” the sources said.
“During this time, the bank invested over Rs 5 thousand crores in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL) which were ADAG Group Companies,” they added.
The investigation has also found that the two companies together received public funds worth over Rs 11,000 crore.
The ED is examining the flow of funds before Yes Bank made these investments. Sources said Yes Bank had received substantial funds from the erstwhile Reliance Nippon Mutual Fund prior to investing in the Anil Ambani group finance companies.
As per Securities and Exchange Board of India regulations, Reliance Nippon Mutual Fund was not allowed to directly invest or divert money into Anil Ambani group finance firms due to conflict-of-interest rules.
Sources said the agency suspects that public money from mutual fund schemes was routed indirectly, with Yes Bank acting as the channel for these transactions.
The probe is ongoing, and further action will depend on the findings of the investigation, sources added.
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