Enforcement Directorate Probes Ex-Yes Bank CEO Rana Kapoor Over Rs 3,300 Crore ADAG Quid Pro Quo Scandal

Former Yes Bank CEO Rana Kapoor presented himself to investigators at the Enforcement Directorate's headquarters on Monday regarding an ongoing investigation into alleged financial improprieties involving industrialist Anil Ambani and companies connected to the Anil Dhirubhai Ambani Group (ADAG).

Officials state that the investigation centers on an alleged reciprocal arrangement between Kapoor and Ambani that reportedly caused substantial losses to Yes Bank. During Kapoor's leadership, the bank's financial exposure to ADAG companies increased dramatically, growing from approximately Rs 6,000 crore as of March 31, 2017, to nearly Rs 13,000 crore by March 31, 2018.

Within this timeframe, Yes Bank reportedly invested more than Rs 5,000 crore in ADAG-affiliated entities, including Reliance Home Finance Limited and Reliance Commercial Finance Limited. A considerable portion of these investments subsequently deteriorated into non-performing assets, generating estimated losses of Rs 3,300 crore for the financial institution.

Investigation authorities claim these transactions were not standard business operations but rather part of a quid pro quo arrangement. In return for Yes Bank's financial commitments to ADAG companies, loans were allegedly provided to businesses controlled by members of Kapoor's family.

The investigation has also revealed that Kapoor and Ambani conducted several private meetings without other senior Yes Bank executives present, during which these alleged arrangements were reportedly finalized. Following these discussions, Kapoor allegedly instructed bank officials to process and approve proposals that investigators claim were non-genuine and failed to adhere to standard banking protocols.

Officials indicated that the questioning of Rana Kapoor forms part of a broader investigation into suspected criminal conspiracy, abuse of official position, and financial misconduct, with additional questioning potentially occurring as the investigation advances.