India’s top investigation agency, the Central Bureau of Investigation (CBI), has filed official charges in a financial fraud case involving businessman Anil Ambani (the chairman of the Reliance Group) ,Rana Kapoor (former CEO and co-founder of Yes Bank) and their family members and companies.
Anil Ambani, Rana Kapoor and the members of Kapoor’s family are accused of fraudulent financial transactions between Yes Bank and companies belonging to the Reliance Group .
What is the Case?
-
Yes Bank (under Rana Kapoor’s leadership) gave large loans (₹5,000+ crore) to two Reliance companies (RCFL and RHFL). These Reliance companies were already in financial trouble and were not in a good position to repay loans.
- Rana Kapoor approved these loans, ignoring warnings from credit rating agencies.
- These funds were then misused, not for business, but diverted to other companies, many of which were linked to Kapoor’s family.
- These loans later turned bad (non-performing assets or NPAs), causing heavy loss of ₹2,796.77 crore to Yes Bank, which is essentially public money.
- In return for getting huge loans from Yes Bank, Reliance companies gave loans and financial help to Rana Kapoor’s family businesses at special (easy) terms. So, it was like “You help my companies with loans, and I’ll help yours.”
-
Reliance Nippon Mutual Fund (linked to Anil Ambani) also invested a huge amount (₹1,160 crore) in a Kapoor family firm.
-
They also bought risky Yes Bank bonds, which could be written off in case of a crisis (which happened later).
Why is this a big deal?
-
The money lent by banks comes from public deposits. Misusing it affects depositors, shareholders, and the economy.
-
This was part of the broader Yes Bank crisis where the bank had to be rescued by other Indian banks (like SBI) and the government.
-
This case reflects deeper issues in India’s banking system — where powerful businesspeople and bankers allegedly cooperate to misuse large sums of money.
- Companies involved in this case are: Reliance Commercial Finance Ltd (RCFL), Reliance Home Finance Ltd (RHFL), Yes Bank and Various family-owned or linked companies.
The CBI has now filed formal charges in court. CBI believe they have enough evidence to prosecute Ambani, Kapoor, and others in court. This will now proceed to trial, where the accused can defend themselves. They have been charged under:
Prevention of Corruption Act – for misuse of official position for personal benefit.
Indian Penal Code – for cheating, criminal conspiracy, etc.
Neither Anil Ambani nor Rana Kapoor have commented yet.
Also Read: Anil Ambani Group, Yes Bank Face ED Raids Over ₹3,000 Cr Loan Fraud
Yes Bank Legal Head Resigns as ₹3,000 Crore Loan Misuse Case Unfolds
The Yes Bank Crisis – The Story You Should Know
Reliance Infra’s Subsidiary JRTR Clears ₹273 Crore Debt to Yes Bank