Mumbai: Former Yes Bank CEO Rana Kapoor appeared before Enforcement Directorate(ED) officials at the ED headquarters in Delhi for questioning in connection with the Anil Ambani-linked money laundering case.
Rana Kapoor and Anil Ambani entered into a "quid-pro-quo" arrangement that resulted in significant losses for Yes Bank.
While Rana Kapoor was at the helm of Yes Bank, Yes Bank had significant exposure of about Rs 6000 Cr 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. 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.
A large portion of these investments turned into Non-Performing Investments (NPI). The bank subsequently suffered a loss of approximately Rs 3300 crore from these dealings. These were not standard business transactions but a "quid-pro-quo". In exchange for Yes Bank's investments, ADAG companies granted loans to firms controlled by Rana Kapoor's family members.
Rana Kapoor & Anil Ambani held private business meetings, often without other Yes Bank officials present, to agree on these illegal arrangements. Rana Kapoor then instructed Yes Bank officers to process the non-genuine proposals.
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