New Delhi, Sep 18 (IANS) The Central Bureau of Investigation (CBI) on Thursday filed the charge sheet in two cases relating to alleged fraudulent transactions between the Anil Ambani-led ADA Group companies and Yes Bank, naming both Ambani and Yes Bank’s former MD and CEO Rana Kapoor and members of his family.

According to the agency, investigations revealed that Yes Bank, under Kapoor’s leadership, invested around Rs 2,045 crore in non-convertible debentures and commercial debts of Reliance Commercial Finance Ltd (RCFL) and another Rs 2,965 crore in Reliance Home Finance Ltd (RHFL) in 2017.

This came despite CARE Ratings placing ADA Group companies “under watch” due to poor financial standing.

“Investigation has 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 the year 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,” a CBI 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,” it added.

The alleged quid pro quo resulted in wrongful losses of nearly Rs 2,796.77 crore to Yes Bank, while ADA Group entities and Kapoor’s family businesses made corresponding unlawful gains.

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 Kapoor’s family.

“Reliance Nippon Mutual Funds also purchased ADA Group Debentures worth Rs. 249.80 crores from Yes Bank,” the agency said.

It also invested Rs 1,750 crore in Yes Bank’s risky Additional Tier-1 (AT1) bonds, which rank lowest in liquidation recovery and can be written off during financial crises.

The charge sheet names Anil Ambani, then Chairman of ADA Group, along with Rana Kapoor, Bindu Kapoor, Radha Kapoor, Roshni Kapoor, RCFL, RHFL (now Authum Investment & Infrastructure Ltd), RAB Enterprises Pvt Ltd, Imagine Estate Pvt Ltd, Bliss House Pvt Ltd, Imagine Habitat Pvt Ltd, Imagine Residence Pvt Ltd and Morgan Credits Pvt Ltd.

The CBI has filed the charge sheet in the competent court in Mumbai on Thursday.

–IANS

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