The Central Bureau of Investigation (CBI) has alleged that Yes Bank suffered losses exceeding ₹2,700 crore due to the “unilateral decision” of its former CEO and co-founder Rana Kapoor to invest in financial firms linked to Anil Ambani’s ADA Group, according to its latest charge sheet filed last month.
The CBI has charged 13 individuals and entities, including Anil Ambani, Rana Kapoor, and Kapoor’s family members, accusing them of criminal conspiracy, cheating, and corruption in connection with loans and investments made between 2017 and 2019. The agency is also investigating the role of Anmol Ambani, Anil Ambani’s son and the then executive director of Reliance Capital, in the case.
₹5,010 crore investment in ADA Group firms
According to the CBI, Yes Bank invested ₹5,010 crore in ADA Group companies — ₹2,965 crore in non-convertible debentures (NCDs) of Reliance Home Finance Ltd (RHFL) and ₹2,045 crore in commercial papers of Reliance Commercial Finance Ltd (RCFL). Of this, ₹3,337.5 crore turned into non-performing investments (NPIs) by December 2019, leading to a loss of ₹2,796.77 crore.
The agency said several ADA Group entities were shell companies that received funds from RHFL and RCFL before routing them to other group firms to clear existing debts. The transactions were allegedly part of a quid pro quo arrangement, with ADA Group extending loans to companies controlled by Kapoor’s family members in return.
The charge sheet said Kapoor, his wife Bindu Kapoor, and daughters Radha and Roshini Kapoor conspired with Anil Ambani to approve the investments, bypassing internal demand assessments and compliance protocols.
Alleged regulatory violations
The CBI also claimed that Reliance Nippon Mutual Fund subscribed to ₹1,160 crore in NCDs of Morgan Credits Pvt Ltd, a company owned by Kapoor’s daughters, at a below-market rate. Additionally, the fund allegedly invested ₹2,250 crore in Yes Bank’s AT-1 bonds — all under the influence of Anil Ambani.
The charge sheet stated that SEBI regulations prohibit a fund house from directly investing its funds into group companies. However, Ambani allegedly circumvented the rules by routing investments through related entities, effectively channeling money back into his own firms.
The CBI added that the funds Yes Bank invested in ADA Group companies were effectively routed back to Ambani’s businesses, creating a circular flow of funds. It also alleged that Kapoor failed to disclose the credit facilities availed by companies owned by his family, violating disclosure norms.
The agency said the investigation into Anmol Ambani’s role in the NCD and mutual fund transactions is still ongoing.
