Mumbai: The Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor as part of a money laundering investigation linked to financial dealings involving companies of the Reliance Anil Ambani Group.

According to sources aware of the development, Kapoor’s statement was recorded under the Prevention of Money Laundering Act (PMLA) in connection with the agency’s probe into substantial transactions between Yes Bank and Anil Ambani group firms during the 2017–2019 period.

Investigators are examining investments made by Yes Bank amounting to approximately Rs 2,965 crore in Reliance Home Finance Limited and about Rs 2,045 crore in Reliance Commercial Finance Limited during the said period.

The ED has alleged that by December 2019, these investments had turned into non-performing assets.

Sources indicated that the outstanding exposure stood at Rs 1,353.5 crore in the case of Reliance Home Finance Limited and Rs 1,984 crore for Reliance Commercial Finance Limited.

“While Rana Kapoor was at the helm of Yes Bank, Yes Bank had significant exposure of about Rs 6000 crore to Reliance Anil Ambani Group (ADAG Group) as on March 31, 2017 and exposure doubled to Rs 13,000 Crore as on March 31, 2018,” the sources said.

“During this time, the bank invested over Rs 5 thousand crores in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL) which were ADAG Group Companies,” they added.

The investigation has further revealed that the two finance firms together received public funds exceeding Rs 11,000 crore.

The ED is also scrutinising the movement of funds prior to the bank’s investments. Sources said Yes Bank had received sizable inflows from the erstwhile Reliance Nippon Mutual Fund before channeling money into the Anil Ambani group companies.

Under Securities and Exchange Board of India (SEBI) regulations, Reliance Nippon Mutual Fund was barred from directly investing in or diverting funds to Anil Ambani group finance entities due to conflict-of-interest norms.

Sources said the agency suspects that public funds from mutual fund schemes were indirectly routed, with Yes Bank allegedly acting as an intermediary in these transactions.

The investigation remains underway, and further steps will be determined based on the findings, sources added.
IANS