Mumbai: The CBI has alleged that then managing director of Yes Bank, Rana Kapoor, had not disclosed about the transaction between his wife – Bindu Kapoor’s firm with the Anil Dhirubhai Ambani (ADA) Group company to the managing committee, which in the process of investing in ADA group firm - M/s Reliance Home Finance Limited (RHFL) in 2016.
CBI Chargesheet Names Kapoor Family And ADA Group Entities
CBI had last month submitted a chargesheet against Kapoor, his wife – Bindu, daughters Radha and Roshini, Anil Kapoor and eight other firms, in connection with the alleged fraudulent transactions of Anil Ambani's Group Companies - Reliance Commercial Finance Ltd (RCFL) and RHFL with Yes Bank and the companies owned by Rana Kapoor’s wife and daughters.
Non-Disclosure Of ₹60 Crore Transaction
CBI has claimed that in December 2016, when Yes bank (YBL) was in process of subscribing to unsecured NCDs of Rs 250.00 crores of M/s Reliance Home Finance Limited (RHFL), however, Rana Kapoor ‘intentionally & dishonestly did not disclose the fact to the other members of Management Credit Committee and Investment Committee (MCC) of the bank, about Inter Corporate Deposit (ICD) of Rs 60.00 crores availed by his wife’s firm from RHFL’s parental company.
Rana Kapoor Allegedly Acted As Sole Decision-Maker
“During the relevant period, it was a common practice at YBL for Rana Kapoor to be the sole decision-maker in matters involving major corporate clients. He personally made commitments to these clients without consulting Key Managerial Personnel of the bank. He independently made commercial decisions and instructed the bank officers to process proposals in accordance with his decisions,” CBI claimed.
₹2,900 Crore Investment In ADA Group Firms
The CBI has claimed that, in October 2017 “Rana Kapoor unilaterally decided to make an investment of Rs. 2,900 crores in the NCDs of ADA Group financial companies within a short span of time, contrary to his earlier stand and in a manner that compromised the bank's interests. He also directed YBL officers to prepare the Credit Appraisal Memorandums and Investment Committee Notes based on his decision. Furthermore, he instructed them to seek Board approval for extending ADA Group's Group Borrower Limit (GBL) beyond 25% of the bank's Tier-I capital.”
Change In Stance On Exposure Limits
CBI had claimed that Rana Kapoor in June 2017, had earlier taken a stand to not take high exposure in RHFL and RCFL and had advised the business team of the bank to limit the exposure to Rs 500 crores for each company. However, in October 2017 he asked bank’s chief risk officer to initiate proposal for seeking approval of YBL board for enhancement of Group Borrower Limit (GBL) from Rs 7,500.00 crores to 15,000.00 crores for ADA Group and single Borrower Limit (SBL) from Rs 1,300.00 crores to Rs 2,500.00 crores for ADA Group companies which are - Ms RHFL, M/s RCFL & M/s RCL.
Additional ₹500 Crore Investment In 2018
Again in April 2018, CBI has claimed that Rana Kapoor, 'intentionally and dishonestly again decided to make an investment of Rs 500 crores in NCDs of RCFL.
NCD Investments Worth ₹3,400 Crores Turned Loss-Making
CBI has in its chargesheet claimed that, “In pursuance of criminal conspiracy, Rana Kapoor unilaterally decided to subscribe NCDs worth Rs. 3400.00 crores of M/s RHEL, M/s RHFL & M/s Reliance Capital Limited (RCL) knowing that there was no demand of these NCDs in the secondary market and holding these NCDs for longer period would be detrimental to YBL.”
Credit Facilities Worth ₹570 Crores To Bindu Kapoor’s Firms
“The companies owned by Bindu received credit facilities amounting to Rs 570.00 crores from M/s RHFL & M/s RCFL at lower rate of interest under the instructions of Anil Ambani. In furtherance of criminal conspiracy, M/s Reliance Nippon Mutual Fund subscribed NCDs worth Rs 1160.00 crores of M/s Morgan Credits Private Limited (a firm owned by Radha and Roshini) at lower rate of interest and also invested an amount of Rs 2250.00 crores in YBL AT-1 Bonds through private placement & secondary market under the influence of Anil Ambani," CBI has alleged.
Investments Turned Non-Performing
CBI had in its complaint had claimed that, "during 2017-2019, YBL had invested Rs. 2965.00 crores and Rs. 2045.00 crores through subscription of Non- Convertible Debentures (NCDs) & Commercial Papers (CPs) of M/s RHFL and M/s RCFL respectively after approval of MCC of the bank, headed by Rana Kapoor. This investment turned into Non-Performing Investment (NPI) in December 2019 with outstanding amounts of Rs 1353.50 crores and Rs 1984.00 crores in loan accounts of RHFL & RCFL respectively."
Loans To Bindu Kapoor’s Firms
CBI has further alleged that during the corresponding period M/s RHFL sanctioned & disbursed loan of Rs 60.00 crores each to Bindu Kapoor’s firms - M/s RAB Enterprises (India) Private Limited and its subsidiary M/s Bliss House Private Limited. Further, M/s RCFL sanctioned and disbursed loan amount of Rs 225 crores to RAB Enterprises. Another loan of Rs 225 crores was also sanctioned and disbursed to M/S Imagine Estate Private Limited, firm owned by Bindu Kapoor.
Funds Routed Indirectly Through Yes Bank
CBI, after the probe in its chargesheet has alleged that, “Anil Ambani was unable to directly invest the funds available at the disposal of M/s Reliance Nippon Mutual Fund in the financial companies of the ADA Group due SEBI Mutual Fund Regulations. Instead, he accomplished this indirectly by conspiring with Rana Kapoor by subscribing to NCDs of M/s MCPL and investments in AT-1 bonds of Yes Bank.”
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Funds Routed Through Complex Transactions
“Simultaneously, Yes Bank Ltd subscribed to NCDs of M/s RHFL, M/s RCFL and M/s RCL. Thus, the funds available at the disposal of M/s Reliance Nippon Mutual Fund were routed to Group companies of ADAG through Yes Bank Ltd," CBI has claimed.
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