ED Questions Yes Bank Co-Founder Rana Kapoor Over Alleged Money Laundering Scheme Involving Reliance Group

The Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor as part of a money laundering investigation into Reliance Anil Ambani group (ADAG) companies , according to a PTI report. As per the PTI report, Kapoor’s statement is being recorded under the Prevention of Money Laundering Act (PMLA). The probe relates to the period between 2017 and 2019, when Yes Bank allegedly invested Rs 2,965 crore in Reliance Home Finance (RHFL) instruments and Rs 2,045 crore in Reliance Commercial Finance (RCFL) instruments. By December 2019, these investments had turned non-performing, the agency claimed. The outstanding amount stood at Rs 1,353.5 crore for RHFL and Rs 1,984 crore for RCFL. The probe also found that the two companies received public funds worth more than Rs 11,000 crore, according to the ED. “Before Yes Bank invested this money in Reliance Anil Ambani group companies, Yes Bank had received substantial funds from the erstwhile Reliance Nippon Mutual Fund. As per Sebi regulations, Reliance Nippon Mutual Fund could not invest or divert funds directly into Anil Ambani group finance companies due to conflict-of-interest rules,” the ED said, as quoted by PTI. The ED further alleged that public money from mutual fund schemes was routed indirectly, with the trail running through Yes Bank’s exposures. Apart from the ED, Anil Ambani group companies are also under the scanner of the Central Bureau of Investigation (CBI) and SEBI. Recently, the ED placed a lien and froze Rs 77.86 crore in bank accounts of Anil Ambani-led Reliance Infrastructure, alleging violations of the Foreign Exchange Management Act (FEMA). The action was linked to the Jaipur–Reengus highway project. Earlier, the CBI booked Jai Anmol Ambani, Anil Ambani’s son, over the alleged cheating of Union Bank of India of Rs 228.06 crore.