The Enforcement Directorate (ED) has intensified its probe into the Yes Bank money laundering case, summoning industrialist Anil Ambani's son, Jai Anmol Ambani, for a second consecutive day. This follows an extensive questioning session that lasted for more than seven hours on Friday at the agency's headquarters in Delhi.
Back-to-Back Questioning Sessions
Jai Anmol Ambani's appearance before the federal investigation agency comes just days after a similar marathon session with Rana Kapoor, the founder and former promoter of Yes Bank. Kapoor was questioned by the ED on Monday in connection with the same alleged money laundering scandal.
The agency is scrutinizing what it describes as a quid-pro-quo arrangement between the Reliance Anil Dhirubhai Ambani Group (ADAG) and Rana Kapoor during his tenure at the bank's helm. Investigators allege this arrangement led to substantial financial losses for Yes Bank.
Massive Exposure and NPAs
Central to the ED's investigation are the colossal loans extended by Yes Bank to companies under the Reliance ADAG umbrella. A senior official revealed critical financial data pointing to a rapid escalation in exposure.
As of March 31, 2017, Yes Bank's exposure to the Reliance ADAG stood at approximately Rs 6,000 crore. Shockingly, this figure more than doubled within a year, reaching a staggering Rs 13,000 crore by March 2018.
During this period, the bank channeled over Rs 5,000 crore into two specific group companies: Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). The ED has stated that a significant portion of these investments subsequently turned into non-performing assets (NPAs), causing severe distress to the bank's financial health.
Next Steps in the Investigation
With Jai Anmol Ambani summoned to appear again on Saturday, the ED seeks further clarification on specific financial transactions linked to the case. The consecutive summons indicate the agency is pursuing a focused line of inquiry and requires more detailed explanations.
The probe underscores the continuing legal and financial scrutiny faced by both the promoters of Yes Bank and the corporate groups that benefited from its lending practices. The outcome of this investigation could have significant implications for understanding the events that led to Yes Bank's crisis and subsequent rescue.
