CBI: ADA Group diverted Yes Bank funds through shell cos

CBI says that during 2017-2019, Yes Bank had invested 2,965 cr and 2,045 cr through subscription of NCDs and CPs of RHFL and RCFL respectively

- Charul Shah Joshi

The Central Bureau of Investigation (CBI), which is probing transactions between Yes Bank(YBL) — under its ormer managing director Rana Kapoor — and the Anil Dhirubhai Ambani (ADA) Group, has alleged that funds received by Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) from the bank were diverted to several shell companies set up solely to receive these funds.

The CBI has submitted a chargesheet before the special CBI court against Kapoor and his family, Anil Ambani and other companies for causing loss to Yes bank to the tune of Rs2,796.77 crore, as the investments made in ADA Group could not be recovered. The agency has said that during 2017-2019, Yes Bank had invested Rs2,965 crore and Rs2,045 crore through subscription of nonconvertible debentures (NCDs) and commercial papers (CPs) of RHFL and RCFL respectively.