ED Questions Former Yes Bank CEO Rana Kapoor in Alleged Money Laundering Probe

The Enforcement Directorate (ED) questioned former Yes Bank CEO Rana Kapoor on December 15, 2025, as part of its investigation into alleged money laundering involving Anil Ambani group companies. Officials confirmed that Kapoor’s statement was recorded under the Prevention of Money Laundering Act (PMLA).

The agency alleges that Kapoor and Anil Ambani entered into a “quid-pro-quo” arrangement that caused significant monetary losses to Yes Bank. The probe focuses on transactions and investments made during Kapoor’s tenure as the bank’s chief executive.

Yes Bank’s Exposure to ADAG Group

According to the ED, Yes Bank had a substantial exposure of about ₹6,000 crore to Reliance Anil Ambani Group (ADAG) companies as on March 31, 2017. This exposure reportedly more than doubled to ₹13,000 crore by March 31, 2018.

During this period, Yes Bank invested over ₹5,000 crore in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL), both part of the ADAG Group. The agency claims that these transactions were not standard business dealings but part of an arrangement benefiting Kapoor and his associates.

Alleged Losses and Quid-Pro-Quo Deals

The ED stated that a large portion of these investments turned into Non-Performing Investments (NPI), resulting in losses of about ₹3,300 crore for Yes Bank. Investigators allege that in exchange for these investments, ADAG companies extended loans to firms controlled by Rana Kapoor’s family members.

The agency further claims that Kapoor and Ambani held private meetings without other Yes Bank officials present to finalise these arrangements. Following these meetings, Kapoor allegedly instructed bank officials to process proposals that were not genuine.

Role Of Mutual Fund Transactions

The ED also highlighted the involvement of funds routed through Reliance Nippon Mutual Fund before Yes Bank invested in ADAG companies. As per SEBI regulations, mutual funds could not directly invest in Anil Ambani group finance companies due to conflict-of-interest rules.

The agency alleges that funds from mutual schemes were indirectly channelled to facilitate Yes Bank’s investments in ADAG entities. This aspect of the investigation aims to establish whether regulatory norms were circumvented during the transactions.

Read More: ED Attaches ₹1,120 Crore in New Assets Linked to Anil Ambani Firms under PMLA.

Conclusion

The questioning of Rana Kapoor marks a key development in the ED’s probe into alleged financial irregularities involving Yes Bank and ADAG Group companies. The agency’s findings point to significant exposure, losses, and possible quid-pro-quo arrangements during Kapoor’s tenure.

Investigators are examining the flow of funds and compliance with regulatory guidelines to determine the extent of violations. Further action will depend on the corroboration of evidence and statements recorded under the PMLA framework.

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