ED to grill Anil Ambani on loans to Rana Kapoor2 min read . Updated: 18 Mar 2020, 11:39 PM IST
- The agency suspects possible quid pro quo in these transactions
- Links between the Ambani and Kapoor companies emerged in a forensic audit of DHFL Group
MUMBAI : The Enforcement Directorate (ED) is likely to question Reliance Group chairman Anil Ambani over loans given by Reliance Home Finance Ltd and Reliance Commercial Finance Ltd to companies linked to Yes Bank Ltd co-founder Rana Kapoor, two people aware of the matter said, as the agency suspects possible quid pro quo in these transactions.
According to the people, who spoke on condition of anonymity, links between Ambani and Kapoor firms emerged in a forensic audit of DHFL (Dewan Housing Finance Corp.) Group, pointing to instances of circular trading between the two. Yes Bank has close to ₹12,000 crore exposure to Reliance Group firms.
The audit report says that Bliss House Pvt. Ltd, linked to the Kapoor family, borrowed ₹60 crore from Reliance Home in April 2018, and used the money to repay an existing ₹60 crore loan of its parent RAB Enterprises Ltd. Similarly, Imagine Estate Pvt. Ltd, another Kapoor-linked company, borrowed ₹125 crore from Reliance Commercial Finance in April 2018, which was again used to repay an existing loan of ₹125 crore of its parent RAB. RAB is owned by Bindu Rana Kapoor, wife of Rana Kapoor.
Mint has reviewed a copy of the forensic audit report.
The ED, which arrested Kapoor on 8 March, has summoned the heads of several large corporate borrowers of Yes Bank including Anil Ambani for questioning. The agency has already booked Kapoor, his wife Bindu and daughters Roshini Kapoor, Rakhee Kapoor Tandon and Radha Kapoor Khanna for allegedly receiving kickbacks. Yes Bank founder and former CEO Rana Kapoor is currently facing charges of money laundering close to ₹4,300 crore by receiving kickbacks for clearing loans which soured later.
According to two ED officials who declined to be named, the agency is looking into allegations of lax documentation and shoddy credit appraisal processes in giving loans to some of its big borrowers. “The big borrowers for Yes Bank are also borrowers for many public sector banks; however, the key difference is the size of the balance sheet. While PSBs had a much bigger balance sheet to withstand if some of these accounts stopped servicing their debt, the same is not true for Yes Bank. It was an extra-aggressive lending and with it came lapses in documentation and approval processes for sanctioning these," said one of the two ED officials.
“Moreover, there are allegations of quid pro quo in some of the high-value accounts, particularly in companies affiliated with ADA Group, Cox and Kings and Dewan Housing Finance Corp. Ltd," this official added.
On 16 March, Subhash Chandra-promoted Essel Group, which has also received ED summons, said all its Yes Bank loans were fully secured by underlying collateral and that the group had never made any transactions with Kapoor or his family or for that matter any private entities controlled by them. The group said that Chandra will go to ED on Wednesday to make a statement on loan exposures to Yes Bank.
According to a person aware of the development, Chandra did not appear on Wednesday and he has sought an alternate date for appearance.
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