CBI finds fund diversion via shell firms in Yes Bank-Anil Ambani Group case

The Enforcement Directorate is also investigating suspected irregularities in the same set of transactions that occurred during Rana Kapoor's tenure at Yes Bank

An inquiry by Central Bureau of Investigation (CBI) into the financial transactions between Yes Bank and the Anil Ambani-led Reliance Group has uncovered what investigators describe as a network of shell firms used to divert funds and misuse commercial papers (CPs), according to a report by The Economic Times.

 

The findings, outlined in a chargesheet filed by the CBI in a special court last month, claim that the transactions formed part of a criminal conspiracy involving former Yes Bank chief executive Rana Kapoor and industrialist Anil Ambani. The alleged transactions, the agency said, resulted in significant losses for the private lender.

 

 

ED probe underway 

A separate Enforcement Directorate (ED) investigation is also underway into suspected irregularities in the same transactions, which took place during Kapoor’s tenure at the bank. Yes Bank’s management has since been overhauled following a Reserve Bank of India–led rescue. Kapoor, who faces money-laundering and related charges, is currently out of prison on bail. The Reliance Group has consistently denied any wrongdoing.

 

Yes Bank’s exposure to ADAG firms 

Between June 2018 and February 2019, Yes Bank invested ₹1,965 crore in commercial papers (CPs) issued by Reliance Home Finance Ltd (RHFL), according to the CBI’s findings. While the majority of these investments were later repaid, a ₹360 crore tranche made in September 2018 became contentious.

 

Around the same period, Reliance Commercial Finance Ltd (RCFL) raised ₹640 crore from Yes Bank through a separate CP issue.   

 

The court filing stated that the shell company had been created to receive funds from RHFL and RCFL and subsequently transfer them to other ADAG firms to settle their liabilities.

 

Dummy companies to reroute loans 

Investigators found that on September 17, 2018, RHFL received ₹327 crore through CP investment. Of this, ₹150 crore was used to repay UTI Liquid Fund, while ₹200 crore was extended as a loan to Gamesa Investment Management Pvt Ltd – a firm with a paid-up capital of ₹1 lakh and no active operations.

 

The firm was not eligible for receiving a high loan amount of ₹200 crore. This loan was sanctioned on instructions of Anil Ambani, the CBI stated in the court document. Gamesa Investment Management then transferred the entire ₹200 crore to Reliance Capital, categorising it as an inter-corporate deposit, the CBI alleged.

 

Layered transactions through linked entities 

A similar diversion pattern was traced to RCFL. Of the ₹640 crore raised through Yes Bank’s CP investment on 19 September 2018, about ₹525 crore was allegedly routed through a series of intermediaries — identified as Project Infrastructure Layering Entities (PILEs).

 

In 2020, the ED launched a probe into loans worth ₹12,500–12,800 crore that Yes Bank had extended to companies owned by Ambani. The probe followed the bank’s collapse and a money-laundering case against Kapoor, who was accused of receiving ₹4,300 crore in kickbacks. During questioning, Ambani denied any wrongdoing, asserting that the loans were fully secured and bore no connection to Kapoor.