Reliance Group chairman Anil Ambani.
Reliance Group chairman Anil Ambani.

Entire exposure to Yes Bank is fully secured, says Anil Ambani

  • Ambani clarifies that his Group has no direct or indirect exposure to Rana Kapoor, entities owned by him and his family
  • ED has been summoning top borrowers of the private lender to ascertain the nature of transactions

Reliance Group chairman Anil Ambani appeared before the Enforcement Directorate (ED) in Mumbai on Thursday to apprise the probe agency of the group’s exposure to Yes Bank Ltd.

In a statement, Reliance Group said its entire exposure to Yes Bank is fully secured and transacted in the ordinary course of business. “All transactions between the Reliance Group and Yes Bank are in compliance with the law and financial regulations."

On 18 March, Mint reported that ED was probing certain alleged quid-pro-quo transactions pertaining to Reliance Home Finance and Reliance Commercial Finance.

According to the statement, Ambani also clarified to the agency that Reliance Group has no direct or indirect exposure to Yes Bank co-founder Rana Kapoor, his wife or daughters, or any entities controlled by them.

ED has been summoning top borrowers of the private lender to ascertain the nature of transactions, and whether the loan approval processes followed due diligence.

In response to ED summons, Sameer Gehlaut, chairman of IndiaBulls Group, on Wednesday told the investigating agency that he was in the UK and was unable to travel to India due to the restrictions imposed following the Covid-19 outbreak.

In his letter, he however clarified on the transactions pertaining to the disputed 40, Amrita Shergill property, which the agency has cited as a key evidence of alleged kickbacks to Kapoor and his family.

“Rana Kapoor and family bought the 40, Amrita Shergill property in September 2017 and registry of the property happened on 15 September. They mortgaged the property to Indiabulls Housing in November 2017 and Indiabulls Housing gave a loan of 285 crore on the property.

Additionally, Indiabulls Housing took personal guarantee of Rana Kapoor and family, whose networth at the time of taking the loan was over 7,000 crore as per their holdings in Yes Bank," said Indiabulls in a media statement.

During Kapoor’s remand hearing on 16 March, the agency told the special prevention of money laundering court that the property purchased by Bliss Abode, a family-owned entity, for 378 crore was through a loan from Indiabulls Housing Finance.

Kapoor was arrested on 8 March. He and his family members are accused of laundering 4,300 crore by receiving alleged kickbacks in lieu of extending sizeable loans to big borrowers through the bank. These loans later turned bad.

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