Reliance Group chairman Anil Ambani was summoned by the Enforcement Directorate regarding the YES Bank crisis. According to a Business Standard report, an ED official confirmed that Ambani was called in as all the big and troubled loans given out during Rana Kapoor’s leadership were being questioned.
The group borrowed over ₹1400 crore from YES Bank, making it one of the biggest borrowers. Ambani who has three companies reeling under default and bankruptcy zone – Reliance Communications, Reliance Home Finance and Reliance Naval – has a massive ₹46,000 crore in debt, the report said. However, Ambani had said that his company has no direct or indirect exposure to YES Bank.
The company said that its entire exposure to YES Bank is fully secured and transacted in ordinary course of business. “Reliance Group is committed to honour repayments of all its borrowings from YES Bank through its various asset monetisation programmes which are all at advanced stages,” it had said earlier in the statement.
YES Bank founder Rana Kapoor was questioned by the ED last week and subsequently was taken under custody on charges of alleged financial irregularities and mismanagement in the bank’s operations. Kapoor will be kept under custody until today (March 16).
Given the bank’s rising troubles, India’s central bank the Reserve Bank of India capped the withdrawals from YES Bank at ₹50,000 on March 5 – which resulted in chaos. However, this would be lifted on March 18, after three top – SBI, ICICI and HDFC said that they will take equity in it.
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