Fraud charges filed against Anil Ambani and Rana Kapoor, totaling approximately 27.96 billion Indian rupees, in a criminal case
The Central Bureau of Investigation (CBI) has filed a combined charge sheet in two cases, accusing business tycoons Anil Ambani and Rana Kapoor, along with their family members and several companies, of alleged fraudulent transactions.
In 2017, Yes Bank reportedly invested around ₹2045 crores in non-convertible debentures and commercial debts of Rana Kapoor's company, Reliance Capital Finance Limited (RCFL), and ₹2965 crores in non-convertible debentures and commercial papers of Rana Kapoor's other company, Reliance Home Finance Limited (RHFL).
Simultaneously, Reliance Nippon Mutual Funds, a subsidiary company of Reliance Capital Ltd, invested ₹1160 crores in non-convertible debentures of Morgan Credits Pvt Ltd, an entity owned by Rana Kapoor's family.
These funds, according to the CBI, were allegedly siphoned through multiple layers, demonstrating a systematic diversion of public money. The accusation in the chargesheet was allegedly written by the Enforcement Directorate (ED) or a related investigating agency in India.
Anil Ambani, who was the chairman of ADA Group and director of Reliance Capital Ltd, the holding company of RCFL and RHFL, is also named in the charge sheet. Reliance Nippon Mutual Funds also purchased ADA Group debentures worth ₹249.80 crores from Yes Bank.
Moreover, the CBI alleges that Reliance Nippon Mutual Funds invested ₹1750 crores in unsecured debt instruments (AT1 Bonds) of Yes Bank. These high-risk/high-reward bonds had no fixed maturity date and could either be converted into equity or written off completely in case of crisis. AT1 Bonds rank most below other debts in the event of liquidation.
The cases involve alleged fraudulent transactions between Anil Ambani's group companies, Yes Bank, and firms owned by Rana Kapoor's wife Bindu Kapoor and daughters Radha Kapoor and Roshni Kapoor. The cases were filed in 2022 and concern transactions between Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL) and Yes Bank and the companies owned by Kapoor's family.
HT has reached out to ADA Group for a comment. The CBI has made these allegations in a statement. The fraudulent arrangement between Anil Ambani and Rana Kapoor resulted in a massive wrongful loss to Yes Bank, amounting to ₹2796.77 crores. The CBI states that this investment by Reliance Nippon Mutual Funds was done on instructions of Anil Ambani.
This development comes as both the Ambani and Kapoor families have been under scrutiny for their business dealings in recent years. The cases are currently under investigation, and the accused are yet to respond to the charges.
Read also:
- chaos unveiled on Clowning Street: week 63's antics from 'Two-Tier Keir' and his chaotic Labour Circus
- Skechers Debuts First American Stores Focused on Athletic Footwear Performance
- Racing ahead in Renewable Energy Dominance: Changzhou, Jiangsu Pushes for Worldwide Renewable Energy Ascendancy
- Feeling disoriented or perplexed.
