Why CBI has filed common chargesheet against Anil Ambani, Rana Kapoor
Anil Ambani has been named as accused in the charge sheet filed in a Mumbai court along with Rana Kapoor, his wife and daughters, and several companies.
The Central Bureau of Investigation has filed a common charge sheet against industrialist Anil Ambani and Yes Bank's former CEO Rana Kapoor in a fraud case, according to a Hindustan Times report.
CBI has found evidence of alleged fraudulent transactions between Ambani Group companies and Yes Bank during the time Rana Kapoor was MD/CEO, which indicate collusion to misuse bank funds and cause financial loss.
Why A Common Chargesheet
The alleged wrongdoing involves intertwined transactions between Anil Dhirubhai Ambani Group entities and Yes Bank during Kapoor’s leadership, including reciprocal flows and mutual benefit, the conduct of both is alleged to be part of the same criminal/conspiracy scheme.
The chargesheet thus names both Ambani and Rana Kapoor (along with Kaplan’s family entities and multiple companies) under provision of IPC (Indian Penal Code) and the Prevention of Corruption Act.
What Are The Allegations
In 2017, Yes Bank invested large sums via non-convertible debentures and commercial papers into two entities of ADA Group — Reliance Commercial Finance Ltd. (RCFL) and Reliance Home Finance Ltd. (RHFL). That was despite CARE Ratings Ltd. flagging them for deteriorating finances.
CBI claims that Rana Kapoor, as CEO and MD of Yes Bank, approved these investments despite the red flags. In return, Anil Ambani's RCFL and RHFL provided concessional loans and credit facilities to firms owned by Rana Kapoor's family, including his wife and daughters.
The funds invested by Yes Bank into RCFL and RHFL were “siphoned off through multiple layers”, including to firms owned by Kapoor's family. That, according to CBI, amounts to “systematic diversion of public money”.
The wrongful loss to Yes Bank is alleged at about ₹2,796.77 crore. CBI says both Anil Ambani and Rana Kapoor made unlawful gains.
