Yes Bank’s exposure to Reliance Home Finance was Rs 1,353.5 crore and Reliance Commercial Finance Rs 1,984 crore, rising to nearly Rs 13,000 crore by 2018
Mumbai
The Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor in connection with a money laundering investigation linked to companies of the Reliance Anil Ambani Group.
Officials said Kapoor’s statement was recorded under the Prevention of Money Laundering Act as part of an ongoing probe into financial dealings between Yes Bank and group companies during the period from 2017 to 2019.
According to investigators, Yes Bank had invested nearly Rs 2,965 crore in Reliance Home Finance Limited and about Rs 2,045 crore in Reliance Commercial Finance Limited during those years. By December 2019, these investments reportedly turned into non-performing assets, raising serious concerns.
Sources said the outstanding exposure stood at Rs 1,353.5 crore in Reliance Home Finance and Rs 1,984 crore in Reliance Commercial Finance. During Rana Kapoor’s tenure, Yes Bank’s total exposure to the Anil Ambani Group was around Rs 6,000 crore in March 2017 and later rose sharply to nearly Rs 13,000 crore by March 2018.
Investigators further stated that more than Rs 5,000 crore was invested by the bank into the two finance companies, both part of the Anil Ambani Group. Together, the firms are believed to have received public funds worth over Rs 11,000 crore.
The ED is also examining the flow of money before these investments were made. Sources said Yes Bank had received large funds from the former Reliance Nippon Mutual Fund.
Under market rules, the mutual fund was not permitted to invest directly in Anil Ambani group companies due to conflict of interest rules. The agency suspects the funds were routed indirectly using Yes Bank as a channel.
The investigation is continuing, and further action will depend on the findings.
