The Central Bureau of Investigation (CBI) on Thursday filed a combined charge sheet in two cases pertaining to alleged fraudulent transactions between industrialist Anil Ambani’s group companies, Yes Bank and firms owned by former bank CEO Rana Kapoor’s kin.
Ambani has been named as accused in the charge sheet filed in a Mumbai court along with Rana Kapoor, his wife and daughters, and several companies, according to a statement by a CBI spokesperson. The cases, filed in 2022, concern transactions between Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL) and Yes Bank and the companies owned by Kapoor’s wife Bindu Kapoor and daughters Radha Kapoor and Roshni Kapoor, the statement said.
Anil Ambani was the chairman of ADA Group and director of Reliance Capital Ltd, the holding company of RCFL and RHFL, the CBI said.
HT has reached out to ADA Group for a comment.
“Investigation has revealed that Yes Bank invested around ₹2045 crores in non-convertible debentures and commercial debts of RCFL and ₹2965 crores in non-convertible debentures and commercial papers of RHFL in 2017 on the approval of Rana Kapoor despite Care Ratings placing ADA Group financial companies ‘under watch’ in view of deteriorating financial standing and adverse market assessment. Funds, thus, invested in RCFL and RHFL by Yes Bank were subsequently siphoned through multiple-layers, demonstrating a systematic diversion of public money,” the CBI spokesperson said in the statement.
“As quid pro-quo, Anil Ambani got credit facilities sanctioned from RCFL and RHFL at concessional rates to loss making family entities of Rana Kapoor i.e. companies owned by Bindu Kapoor (wife), Radha Kapoor and Ms Roshani Kapoor (daughters),” CBI said.
{{/usCountry}}“As quid pro-quo, Anil Ambani got credit facilities sanctioned from RCFL and RHFL at concessional rates to loss making family entities of Rana Kapoor i.e. companies owned by Bindu Kapoor (wife), Radha Kapoor and Ms Roshani Kapoor (daughters),” CBI said.
{{/usCountry}}“This fraudulent arrangement resulted in massive wrongful loss to Yes Bank (amounting to ₹2796.77crores) and corresponding unlawful gain to RCFL, RHFL and other companies of ADA Group as well as companies owned by family members of Rana Kapoor,” the agency added.
In addition, CBI said, Reliance Nippon Mutual Funds (another subsidiary company of Reliance Capital Ltd), on instructions of Anil Ambani invested ₹1160 crores during 2017-18 in non-convertible debentures of - Morgan Credits Pvt Ltd, another entity owned by Rana Kapoor's family. Reliance Nippon Mutual Funds also purchased ADA Group debentures worth ₹249.80 crores from Yes Bank.
CBI further alleged that Reliance Nippon Mutual Funds also invested ₹1750 crores in unsecured debt instruments (AT1 Bonds) of Yes Bank. “These high risk/high reward bonds had no fixed maturity date and could either be converted into equity or written off completely in case of crisis. It may be recalled that AT1 Bonds rank most below other debts in the event of liquidation”.