A Central Bureau of Investigation (CBI) probe into financial transactions between Yes Bank and the Anil Ambani-led Reliance Group has revealed a complex and deliberate scheme of fund diversion through a network of shell entities. According to documents accessed by The Economic Times, funds running into thousands of crores were routed through layered companies to benefit Reliance Group firms, causing significant losses to the private lender.
The findings, detailed in a chargesheet filed before a special court last month, allege that the transactions formed part of a criminal conspiracy between former Yes Bank CEO Rana Kapoor and industrialist Anil Ambani. The Enforcement Directorate (ED) is conducting a parallel investigation into suspected money laundering and fund misuse.
During Kapoor’s tenure, Yes Bank made a series of questionable investments and loan approvals that later strained the bank’s financial position. Following intervention by the Reserve Bank of India (RBI), Yes Bank underwent a major restructuring, and its management was completely overhauled. Kapoor, accused in multiple corruption and money laundering cases, is currently out on bail.
An email sent to the Anil Dhirubhai Ambani Group (ADAG) seeking comment remained unanswered. The group has consistently denied any wrongdoing.
Yes Bank’s ₹1,965 Crore Investment Under Scrutiny
Between June 2018 and February 2019, Yes Bank subscribed to commercial papers (CPs) worth ₹1,965 crore issued by Reliance Home Finance Ltd (RHFL). While a large portion of these investments was later repaid, a ₹360 crore tranche made in September 2018 became contentious.
Around the same period, Reliance Commercial Finance Ltd (RCFL) also raised ₹640 crore from Yes Bank through CPs.
According to the chargesheet,
“The purpose of creating these shell companies was to receive money from RHFL and RCFL and subsequently transfer the same to other ADAG companies for discharging their liabilities.”
₹200 Crore Routed Through a Shell Company
On September 17, 2018, RHFL received a CP investment of ₹327 crore. Of this, ₹150 crore was used to repay UTI Liquid Fund, while ₹200 crore was extended as a loan to Gamesa Investment Management Pvt Ltd, a company with a paid-up capital of just ₹1 lakh and no active business operations.
The CBI states,
“This company was not eligible to receive such a high-value loan. It was sanctioned on the instructions of Anil Ambani because the borrower entity was a shell company operated by employees of ADAG firms.”
Soon after, Gamesa Investment Management transferred the entire ₹200 crore to Reliance Capital, disguising it as an inter-corporate deposit.
‘Project Infrastructure Layering Entities’: A Web of Diversion
The investigation further revealed that out of the ₹640 crore raised by RCFL, ₹525 crore was allegedly diverted through a series of companies identified as Project Infrastructure Layering Entities (PILEs). These included:
- Species Commerce and Trade Pvt Ltd
- Crest Logistics and Engineers Pvt Ltd
- Gamesa Investment Management Pvt Ltd
- Mohanbir Hi-Tech Build Pvt Ltd
All of these entities were found to be directly or indirectly linked to the ADAG network.
On the same day Yes Bank made its investment, RCFL transferred ₹125 crore to Species Commerce, which immediately passed it on to Crest Logistics. From there, the funds moved to Reliance Infrastructure Ltd, which used the amount to pay dividends to shareholders — a clear deviation from the intended purpose of the funds.
Investigators Trace Layered Transactions
The CBI and ED are now jointly examining how Yes Bank’s funds were layered through multiple shell companies before being absorbed into Reliance Group firms. Investigators described the structure as “a deliberate layering mechanism designed to conceal the flow of funds and evade regulatory oversight.”
Financial crime experts say the case is among the most significant in India’s banking history, exposing a rare convergence of corporate governance failures, banking violations, and investment irregularities.
“This isn’t merely a case of bad lending — it’s a blueprint of how financial networks were manipulated to funnel funds under the guise of legitimate corporate transactions,” a senior financial investigator familiar with the matter said.
