The Central Bureau of Investigation (CBI) has broadened its investigation into the dealings of Reliance ADA Group, Yes Bank, and Reliance Nippon Mutual Fund (RNMF), revealing a complex web of interlinked transactions. The CBI's chargesheet alleges that Anil Ambani's Reliance ADA Group and Yes Bank's former CEO, Rana Kapoor, orchestrated a quid pro quo arrangement, with funds allegedly being recycled among ADA Group companies, Yes Bank, and RNMF. This was purportedly done to circumvent SEBI regulations and mask financial strain.
The CBI's investigation indicates that in 2017, Yes Bank, under Rana Kapoor's direction, invested approximately ₹2,045 crore in non-convertible debentures and commercial debts of Reliance Commercial Finance Ltd (RCFL), and another ₹2,965 crore in similar instruments of Reliance Home Finance Limited (RHFL). These investments were made despite Care Ratings placing the Anil Dhirubhai Ambani (ADA) Group "under watch" due to concerns over their deteriorating financial health.
According to the CBI, the funds invested by Yes Bank in RCFL and RHFL were subsequently siphoned off through multiple layers, demonstrating a systematic diversion of public money. In return for these investments, RCFL and RHFL allegedly extended concessional loans and facilities to unprofitable firms linked to Kapoor's family, creating a quid pro quo arrangement. This allegedly resulted in a wrongful loss of ₹2,796.77 crore to Yes Bank and a corresponding unlawful gain to ADA Group companies and Kapoor family entities.
The chargesheet also scrutinizes the role of Jai Anmol Ambani in influencing investment decisions at RNMF. Further investigation revealed that Reliance Nippon Mutual Fund, a Reliance Capital subsidiary, acting on Ambani’s instructions, invested ₹1,160 crore in debentures of Morgan Credits Pvt Ltd, a Kapoor family-owned company, during 2017-18. The fund also purchased ADA Group debentures worth ₹249.80 crore from Yes Bank and invested ₹1,750 crore in the bank's high-risk Additional Tier-1 (AT1) bonds.
The CBI has accused Anil Ambani of conspiring with Rana Kapoor to divert public funds from Yes Bank into financially distressed Reliance entities, causing significant losses to the lender. Two criminal cases were initially registered in 2022 against Rana Kapoor, RCFL, RHFL, and others, following a complaint filed by Yes Bank's Chief Vigilance Officer. The chargesheet names Anil Ambani, Rana Kapoor, his wife Bindu Kapoor, their daughters Radha and Roshni Kapoor, and several companies, including RCFL, RHFL, RAB Enterprises, Imagine Estate, Bliss House, Imagine Habitat, Imagine Residence, and Morgan Credits.
In related developments, the Enforcement Directorate (ED) has also been investigating the ADA Group for alleged financial irregularities, with the probe widening to encompass ₹17,000 crore in loan irregularities. The ED recently arrested Ashok Kumar Pal, CFO of Reliance Power and a close aide of Anil Ambani, in connection with a money laundering probe tied to the alleged ₹17,000-crore ADA Group loan fraud. The ED alleges that Pal played a central role in orchestrating a fraudulent bank guarantee worth over ₹68 crore.
These investigations by the CBI and ED highlight the serious corporate governance challenges and the need for accountability in financial institutions. The agencies are scrutinizing the alleged misuse of influence and financial irregularities linked to fund diversion, which has led to substantial losses for Yes Bank and its investors.
