News Nation Logo

Anil Ambani Summoned By Enforcement Directorate In Connection With Probe Against Yes Bank Founder Rana Kapoor

The Anil Ambani Group, Essel, ILFS, DHFL And Vodafone Were Among The Stressed Corporates Yes Bank Had Exposure To.

News Nation Bureau | Edited By : Surabhi Pandey | Updated on: 16 Mar 2020, 10:56:43 AM
Anil Ambani file photo

Anil Ambani’s statement will be recorded under the Prevention of Money Laundering Act (PMLA) upon deposition, the ED officials said. (Photo Credit: File Photo)

New Delhi:

Reliance Group Chairman Anil Ambani was summoned by the Enforcement Directorate in connection with a probe against Yes Bank founder Rana Kapoor on Monday. At Rs 14,000 crore, Anil Ambani was the biggest borrower of Yes Bank. A PTI report said that Ambani has sought exemption on health grounds from the agency and he may be issued a new date. Union Finance Minister Nirmala Sitharaman had said in a March 6 press conference that the Anil Ambani Group, Essel, ILFS, DHFL and Vodafone were among the stressed corporates Yes Bank had exposure to. Ambani’s statement will be recorded under the Prevention of Money Laundering Act (PMLA) upon deposition, the ED officials said.

The ED has accused Rana Kapoor, his family members and others of laundering “proceeds of crime” worth Rs 4,300 crore by receiving alleged kickbacks in lieu of extending big loans through their bank that later turned NPA. On March 5, the RBI had imposed a moratorium on Yes Bank, restricting withdrawals to Rs 50,000 per depositor till April 3. The RBI also superseded the board and placed it under an administrator, Prashant Kumar, former deputy managing director and CFO of SBI.

Founded by Rana Kapoor and Ashok Kapur in 2004, Yes Bank was conceived as ‘Full Service Commercial Bank’. Over the years, the bank became darling of both the corporate and retail customers. Meanwhile, the rescue plan for the embattled bank has been notified by the Union Finance Ministry. In simple terms, this means that the moratorium or ban imposed by the Reserve Bank of India on the cash withdrawals will be lifted within three working days.

For the hassled customers, who have been queuing outside ATMs and bank branches to withdraw their money, there will be no ban from Wednesday. Those heavily dependent on digital payments will also heave a sigh of relief. Since the moratorium meant no e-transactions via Yes Bank accounts. According to the 'Yes Bank Ltd Reconstruction Scheme, 2020', a new board, having at least 2 directors of the State Bank of India, will take over within seven days of the issuance of notification.

On Friday, giving out the details of the rescue plan, Union Finance Minister Nirmala Sitharaman said the Union Cabinet has approved the reconstruction scheme for Yes Bank as suggested by the Reserve Bank. On Thursday, the SBI said it will invest Rs 7,250 crore in Yes Bank, which is much higher than Rs 2,450 crore it had planned initially for 49 per cent stake in the private sector lender that began operations in 2004.Total assets of Yes Bank Ltd stood at Rs 3,46,576 crore as end of September 2019. The bank posted a net loss of Rs 486 crore for the first half ended September of the current fiscal year on a total income of Rs 17,421 crore. Yes Bank will on Saturday (March 14) announce its third quarter results, which was delayed amid the bank's capital raising plans.

(With agency inputs)

For all the Latest Business News, Download News Nation Android and iOS Mobile Apps.

First Published : 16 Mar 2020, 09:59:26 AM