Yes Bank lost over Rs 2,700 crore in dealings with Anil Ambani-led firms: CBI

Yes Bank suffered a loss of over Rs 2700 crore due to the unilateral decision of its cofounder Rana Kapoor to invest in the Anil Ambaniled financial companies said the CBIs charge sheet in a case pertaining to alleged fraudulent transactions between the bank and the industrialists group entitiesThe Central Bureau of Investigation CBI last month filed a charge sheet against 13 people and entities including Anil Ambani Rana Kapoor and his family members alleging criminal conspiracy cheating and corruption related to loans and investmentsThe Federal probe agencys document said that further investigation was on regarding the role of Anil Ambanis son Anmol Ambani the then executive director of Reliance Capital in the caseThe case is based on two separate complaints lodged by the Chief Vigilance Officer of Yes BankAs per the charge sheet the bank when Rana Kapoor was its managing director and chief executive officer made investments of Rs 5010 crore in financial companies of the Anil Dhirubhai Ambani ADA Group between 2017 and 2019The investments included Rs 2965 crore in nonconvertible debentures NCDs of Reliance Home Finance Limited RHFL and 2045 crore in commercial papers of Reliance Commercial Finance Limited RCFL Out of the total amount Rs 33375 crore turned Non Performing Investment NPI by December 2019 the charge sheet saidThe bank could not recover the entire NPI from the securities against these investments and thus suffered a loss of Rs 279677 crore it saidThe charge sheet mentioned that some entities of ADA were found to be shell companiesThe primary purpose of these shell companies was to receive funds from RHFL and RCFL and subsequently route funds to other ADA Group companies to discharge their existing financial liabilities it saidThe probe agency alleged that these transactions were an outcome of quidproquo arrangement for loans granted by RHFL and RCFL to companies owned by Rana Kapoors family membersRana Kapoor working as a public servant along with his wife Bindu Kapoor and daughters Radha and Roshini Kapoor entered into a criminal conspiracy with Ambani the then chairman of ADA Group it allegedIn pursuance of the criminal conspiracy Rana Kapoor unilaterally decided to subscribe to NCDs knowing fully that there was no demand for these NCDs in the secondary market and holding them for a longer period would be detrimental to Yes Bank the chargesheet saidThe companies led by Bindu Kapoor availed of credit facilities amounting to Rs 570 crore from RHFL and RCFL at lower rate of interest under the instructions of Anil Ambani the CBI allegedThe charge sheet highlighted that as per the protocol Rana Kapoor was bound to disclose the loan facilities availed by the companies owned by his familyHowever he intentionally and dishonestly did not disclose the same it addedFurther the CBI said Reliance Nippon Mutual Fund subscribed to NCDs worth Rs 1160 crore of Morgan Credits Private Limited owned by Kapoors daughters at a lower rate of interestIt also invested an amount of Rs 2250 crore in Yes Bank AT1 Bonds a type of hybrid capital instrument that banks issue to meet regulatory capital requirements through private placement and secondary market under the influence of Anil Ambani the CBI allegedThe charge sheet claimed that SEBIs mutual fund regulations prohibited Anil Ambani from directly investing the funds of Reliance Nippon Mutual Fund in his other financial companies He achieved it indirectly by subscribing to NCDs and investments in AT1 bonds of Yes BankThe Rana Kapoorled bank subscribed to NCDs of RHFL and RCFL and thus money was routed back to Ambanis company it saidThe CBI said it was probing the role of Anil Ambanis son in subscribing to NCDs of Morgan Credits and Reliance Nippon Mutual Funds investment in AT1 bondsThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever