Rs 2,796-cr fraud: CBI files chargesheet against Anil Ambani and others

A CBI statement said that two criminal cases were registered against Rana Kapoor, and M/s Reliance Commercial Finance Ltd (RCFL), M/s Reliance Home Finance Limited (RHFL) and others on the complaint filed by Chief Vigilance Officer of Yes Bank in 2022.

Investigation revealed that Yes Bank invested around Rs 2,045 crore in non-convertible debentures and commercial debts of M/s RCFL and Rs 2,965 crore 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, the statement said.

Funds, thus, invested in M/s RCFL and M/s RHFL by Yes Bank were subsequently siphoned through multiple-layers, demonstrating a systematic diversion of public money, the statement said.

The CBI stated that the investigation revealed an alleged conspiracy between Rana Kapoor and Anil Ambani, wherein the former abused his official position to channel substantial public funds of Yes Bank Ltd into financially stressed ADA Group Companies, while ADA Group reciprocated by sanctioning and facilitating concessional loans and investments to entities controlled by Rana Kapoor’s family.

As quid pro quo, Anil Ambani got credit facilities sanctioned from M/s RCFL and M/s RHFL at concessional rates to loss-making family entities of Rana Kapoor, i.e., companies owned by his wife Bindu Kapoor, and daughters Radha and Roshani Kapoor.

This fraudulent arrangement resulted in a wrongful loss of Rs 2,796.77crore to Yes Bank and corresponding unlawful gain to M/s RCFL, M/s RHFL and other companies of ADA Group as well as companies owned by family members of Rana Kapoor, the statement said.

In addition, Reliance Nippon Mutual Funds (another subsidiary company of Reliance Capital Ltd), on instructions of Anil Ambani invested Rs 1,160 crore during 2017-18 in Non-Convertible Debentures of M/s Morgan Credits Pvt Ltd, another entity owned by Rana Kapoor’s family. Reliance Nippon Mutual Funds also purchased ADA Group Debentures worth Rs 249.80 crore from Yes Bank, the statement said.

In addition, Reliance Nippon Mutual Funds also invested Rs 1,750 crore 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, the statement said.

Investigation, thus, revealed a conspiracy between Rana Kapoor, Anil Ambani, Bindu Kapoor, Radha Kapoor, Roshni Kapoor, M/s RCFL, M/s RHFL (now M/s Authum Investment & Infrastructure Ltd), M/s RAB Enterprises Pvt Ltd, M/s Imagine Estate Pvt Ltd, M/s Bliss House Pvt Ltd, M/s Imagine Habitat Pvt Ltd, M/s Imagine Residence Pvt Ltd and M/s Morgan Credits Pvt Ltd, under sections of PC Act and IPC, the official said. The CBI has field chargesheets accordingly in the Competent Court in Mumbai on Thursday, the statement added.