ED Summons Anil Ambani In Connection With Probe Against Yes Bank's Rana Kapoor

The Reliance Group is among the largest borrowers from the bank, with an exposure of nearly Rs 14,000 crore.

India   |   16 March 2020 10:29 AM GMT / Updated : 2020-03-16T16:02:51+05:30
Editor : Prateek Gautam
ED Summons Anil Ambani In Connection With Probe Against Yes Banks Rana Kapoor
The Enforcement Directorate (ED) has summoned Reliance Group chairman Anil Ambani in connection with its investigation against Yes Bank co-founder Rana Kapoor. This comes as a part of interrogating all the major borrowers of the Yes Bank which received large credit facilities during Kapoor's tenure.

According to a Business Standard report, the ED is probing all the biggest borrowers and the bad loans that were given during Kapoor's tenure as the CEO of the crisis-hit bank.

Ambani, whose group companies took loans worth Rs 14,000 crores from the fifth largest private sector bank in the country, was summoned for investigation on Monday, March 16. Ambani will have to reveal details of the loans disbursed to his group and the terms and conditions signed with the private lender.

The bank had sanctioned a large portion of the it's loans to the construction sector which was under the Anil Ambani-led group and the ED is looking into details to understand the process and criteria of disbursing these loans.

The top borrowers of Yes Bank who failed to repay the loans have been mentioned by several political leaders in the past as well.

Finance minister Nirmala Sitharaman recently had named some financially-stressed corporate entities that had failed to repay loans taken from Yes Bank and said that their exposure had begun before 2014.

Anil Ambani's Reliance Group, along with IL&FS and DHFL, featured in the list of defaulters presented by the FM.

In response to that, the Reliance Group issued a statement last week, claiming that it had no direct or indirect exposure to Rana Kapoor's family. It also said that all of the loans borrowed from Yes Bank were "fully secured".

"The entire exposure to YES Bank is fully secured and is transacted in the ordinary course of business, and we are committed to honour our repayments to YES Bank," the statement said.

Also Read: Anil Ambani Owes Rs 12,800 Crores To Yes Bank, BJP MP Subhash Chandra Rs 8,400 Crores

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