THE Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor as part of a money laundering investigation against Reliance Anil Ambani group companies, officials said. His statement was recorded under the Prevention of Money Laundering Act (PMLA), they said. Kapoor, 68, was arrested and questioned by the ED earlier in separate money laundering cases linked to the alleged illegal disbursal of loans by the lender (Yes Bank) he helmed.

 

ED officials said they suspect a quid pro quo between Kapoor and Ambani in this case. There was no immediate comment from Kapoor or his lawyers on the ED questioning. Yes Bank, according to the officials, had an exposure of about Rs 6,000 crore to Reliance Anil Ambani Group (ADAG Group) as on March 31, 2017, and this figure doubled to Rs 13,000 crore within a year (as on March 31, 2018). The companies under probe are Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL). A “large” portion of these investments turned into non-performing investments (NPI), and the bank, subsequently, suffered a loss of Rs 3,300 crore from these dealings, officials alleged. 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 Kapoor’s family, they said. The Enforcement Directorate suspects the two businessmen held “private” meetings regarding these deals.