The Central Bureau of Investigation (CBI) has informed a special court that it has obtained the necessary sanction to prosecute Yes Bank founder Rana Kapoor under the Prevention of Corruption Act in a significant alleged loan fraud case.
Key Developments in the Case
During a recent court hearing, the federal investigation agency confirmed it had received the mandatory prosecution sanction required for public servants as per the anti-corruption legislation. This development comes after the CBI filed a chargesheet last month against multiple accused parties, including Kapoor, his wife Bindu, daughters Radha and Roshini, and various companies associated with them.
The chargesheet also names business magnate Anil Ambani, who served as chairman of the ADA Group at the relevant time, along with Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Limited (RHFL). The case originated from a complaint filed by Yes Bank's Chief Vigilance Officer in 2022.
Allegations and Financial Details
According to the official complaint, Yes Bank invested approximately Rs 2,045 crore in non-convertible debentures and commercial debts of RCFL and another Rs 2,965 crore in similar instruments of RHFL during 2017. These investments were approved by Rana Kapoor despite Care Ratings having placed ADA Group Financial Companies "under watch" due to deteriorating financial standing and adverse market assessment.
The CBI has alleged in its chargesheet that during the period in question, it was common practice at Yes Bank for Kapoor to act as the sole decision-maker for major corporate clients without consulting other key managerial personnel. The investigation agency registered the corruption case on March 7, 2020, against Kapil Wadhawan, Dheeraj Wadhawan, and Rana Kapoor, who was then serving as Yes Bank's managing director and chief executive officer.
Current Status and Legal Proceedings
Rana Kapoor, who faces multiple cases from both the CBI and the Enforcement Directorate (ED), is currently out on bail. The trials in any of these cases have yet to commence. All accused parties have consistently denied any wrongdoing.
In recent legal maneuvers, lawyers representing Reliance Commercial Finance Limited filed a plea seeking access and inspection of the chargesheet and related documents before the court hearing on taking cognizance of the chargesheet. The court has directed the CBI to file a response to this plea, with the matter scheduled for hearing next month.
On November 14, the CBI submitted additional documents for the court's consideration, including the sanction obtained under Section 19 of the Prevention of Corruption Act. This marks a significant step forward in the legal process that began when the CBI initially applied for prosecution sanction during a court hearing last month.
