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Yes Bank case: Anil Ambani summoned by ED over unpaid loans

Yes Bank news: Reliance Group is one of the biggest borrowers of the troubled bank. It accounted for a significant portion of the loans disbursed for the construction sector

twitter-logoBusinessToday.In | March 17, 2020 | Updated 09:32 IST
Yes Bank case: Anil Ambani summoned by ED over unpaid loans
Yes Bank case: Anil Ambani summoned

Yes Bank case: Reliance Group Chairman Anil Ambani has been summoned by the Enforcement Directorate (ED) in connection with the probe against Yes Bank founder Rana Kapoor. With an exposure of Rs 14,000 crore, Reliance Group is one of the largest borrowers of the bank. The agency is drafting a list of the top five borrowers that were extended large credit facilities by the bank during Rana Kapoor's tenure. The bank had last week said that it had no direct or indirect exposure to the Kapoor family in a statement.

An ED official said that the agency was looking into all the big borrowers of the bank and the stressed loans sanctioned during the tenure of Rana Kapoor, as mentioned in a report in Business Standard. Ambani has been summoned by the agency on March 16. Information including loan details, terms and conditions and side agreements have been sought from Ambani.

The official said that Reliance Group accounted for a significant portion of the bank's loans that were disbursed for the construction sector. The official said that ED sought to understand the process of disbursing the loans, as mentioned in the copy.

Also read: YES Bank was on the verge of going belly up; here's what Q3 results reveal

Reliance Group is yet to answer the email sent by the daily ED summoning Anil Ambani in connection with the money laundering case against Rana Kapoor.

The official further added that most of the big borrowers have defaulted and the loans have turned into bad debts. "The management and promoters will be examined and questioned in the coming weeks," said the official.

"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," said Reliance Group in a statement last week.

Vodafone Idea, DHFL, IL&FS, Essel Group and CG Power are some of the defaulters that Yes Bank had extended loans to.

Also read: Yes Bank loses more money in 3 months than PNB did in Nirav Modi's scam

Also read: SBI to invest Rs 7,250 crore in Yes Bank

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