(Reuters) -India’s federal investigating agency said on Thursday it has filed chargesheets in cases connected to “fraudulent” transactions between Anil Ambani’s companies, Yes Bank and firms owned by the lender’s former top boss.
Central Bureau of Investigation (CBI) said that Yes Bank invested over 50 billion rupees ($567.21 million) in two Ambani-controlled companies in 2017, with approval from the bank’s former CEO Rana Kapoor, despite rating agencies flagging financial risks.
The agency said the funds were later siphoned off, demonstrating a systematic diversion of public money.
CBI said that Kapoor “abused” his position to channel Yes Bank’s funds into financially troubled Ambani group firms, which in return extended concessional loans to companies linked to Kapoor’s family.
The arrangement resulted in a loss of 27.97 billion Indian rupees ($317.29 million) to Yes Bank and led to unlawful gains for Ambani’s firms and the companies linked to Kapoor’s family, CBI said.
Anil Ambani’s spokesperson and Rana Kapoor did not immediately respond to Reuters’ requests for comment.
($1 = 88.1540 Indian rupees)
(Reporting by Nishit Navin; Editing by Shinjini Ganguli)
