Anil Ambani's companies are accused of bribing Yes Bank officials to get loans cleared
- Yes Bank officials cleared Rs 3,000 crore loans to Anil Ambani firms without due diligence: sources
- Loans were allegedly approved between 2017 and 2019 with backdated Credit Approval Memorandums
- Loan funds were routed to shell companies, breaching original loan terms, the sources said
Top officials of Yes Bank cleared loans of around Rs 3,000 crore to companies helmed by Anil Ambani without due diligence after they were bribed, the Enforcement Directorate's (ED) investigation into alleged irregularities in the business tycoon's dealings has found. These massive loans were cleared between 2017 and 2019.
According to sources, the central agency has detected an "illegal quid pro quo arrangement" as part of which Yes Bank promoters allegedly received payments in privately held concerns just before sanctioning the loans.
The probe has found "serious violations" in the loan approval process. Credit Approval Memorandums were backdated and investments were pushed without due diligence or credit analysis in violation of the bank's policies. Also, loan funds were routed to shell companies and other group entities in breach of the original loan terms.
The ED has identified several red flags in the loan clearances -- money disbursed to entities with poor financials, common addresses and directors among borrower companies, lack of proper documentation, and evergreening of group corporate loans. Some loans were disbursed even before formal sanction, while others were disbursed on the day they were applied for.
The central agency has launched a massive search operation across more than 35 locations in connection with the money laundering investigation against companies led by Anil Ambani.
The ED's probe is based on two CBI cases that allege massive financial irregularities and diversion of bank loans. It has also received inputs from the National Housing Bank, Securities and Exchange Board of India, National Financial Reporting Authority, and Bank of Baroda.
The agency has found a "calculated scheme" to defraud banks, investors, shareholders and public institutions by misusing loan funds, the sources said.
In the ongoing crackdown, the agency has searched over 50 companies and questioned more than 25 individuals. The investigation is expected to widen further, the sources said.
Track Latest News Live on NDTV.com and get news updates from India and around the world
