The Enforcement Directorate (ED) questioned Reliance Group chairman Anil Ambani for more than nine hours in connection with a £1.25 billion loan extended by Yes Bank to the Anil Dhirubhai Ambani Group (ADAG) companies. ADAG had allegedly given £110 million as loans to firms owned by Yes Bank promoter Rana Kapoor’s family members at the same time the former received the loan. The move is suspected to be a quid pro quo arrangement.
Ambani was questioned at the ED headquarters in south Mumbai from 9 am to 6 pm. It is learnt that he may be questioned again in the month-end. According to a Reliance Group statement, Ambani met ED officials to clarify that the group’s entire exposure to Yes Bank is secured and in compliance with laws and financial regulations.
“Ambani also clarified to the agency that Reliance Group has no direct or indirect exposure to Rana Kapoor or his wife or daughters, or any entities controlled by Rana Kapoor or his family. Reliance Group is committed to honour repayments of all its borrowings from Yes Bank through its various asset monetisation programmes,” the statement said.
The financial transactions and loans between Reliance Group companies, Yes Bank and companies associated with the Rana Kapoor family are said to be under the scanner of the ED. According to media reports, Yes Bank sanctioned loans to ADAG companies till 2018 even as it was in a financial crisis and faced bad loans. Later, ADAG companies allegedly gave loans to Kapoor’s family companies in the form of debentures.