The Enforcement Directorate (ED) on Monday questioned Yes Bank co-founder Rana Kapoor in connection with a money laundering probe involving companies of the Reliance Anil Ambani Group, officials said.

His statement was recorded under the Prevention of Money Laundering Act (PMLA). Kapoor, 68, has faced ED questioning earlier in separate money laundering cases linked to the alleged illegal disbursal of loans during his tenure at Yes Bank.

In the present case, ED officials said they suspect a quid pro quo arrangement between Kapoor and Anil Ambani. There was no immediate comment from Kapoor or his lawyers on the ED questioning and the allegations.

Ambani, 66, has also been questioned by the agency in the past in connection with alleged bank loan “irregularities” involving his group companies.

The Reliance Group has consistently maintained that Ambani was not involved in the day-to-day management of the group. According to the ED, Yes Bank’s exposure to the Reliance Anil Ambani Group stood at around Rs 6,000 crore as on March 31, 2017.

Within a year, this exposure rose to about Rs 13,000 crore as on March 31, 2018. The companies under investigation are Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL).

Officials alleged that a “large” portion of these investments turned into non-performing investments, leading to a loss of about Rs 3,300 crore for the bank.

These transactions, the agency claimed, were not standard business dealings but formed part of a “quid pro quo” arrangement.

As per the ED, ADAG companies “granted” loans to firms controlled by Kapoor’s family in return for Yes Bank’s investments. The agency also suspects that Kapoor and Ambani held “private” meetings related to these deals.

The probe focuses on the 2017–2019 period, during which Yes Bank allegedly invested Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL. By December 2019, these investments had turned into non-performing assets, the ED has claimed earlier.

The outstanding amounts stood at Rs 1,353.5 crore for RHFL and Rs 1,984 crore for RCFL. The investigation further found that the two companies received public funds of over Rs 11,000 crore, according to the agency.

In a related development, the ED has recently attached assets worth Rs 1,120 crore belonging to certain Anil Ambani Group companies as part of the ongoing probe.