Mumbai: The Enforcement Directorate (ED) on Thursday carried out a series of raids in connection with an alleged Rs. 3,000-crore bank loan fraud and money laundering case involving companies linked to Reliance Group chairman Anil Ambani, official sources confirmed.
Over 35 locations across Mumbai, tied to around 50 companies and 25 individuals, were searched under the Prevention of Money Laundering Act (PMLA). The operation is being led by a Delhi-based ED investigative unit.
While the Reliance Anil Dhirubhai Ambani Group has not issued a statement yet, ED officials said the raids are part of an investigation into suspected misappropriation of loans sanctioned by Yes Bank to Ambani’s group companies between 2017 and 2019.
According to sources, the probe has uncovered a suspected quid pro quo arrangement, in which Yes Bank promoters allegedly received funds in entities linked to them around the same time that substantial loans were extended to Anil Ambani’s firms.
The agency is also examining possible violations in the loan sanctioning process, including allegations of backdated credit approval memorandums (CAMs), investment approvals made without proper due diligence, and breaches of the bank’s internal credit policies.
Investigators believe that a portion of these loans was diverted to multiple group and shell companies.
In several cases, the borrower entities reportedly lacked sound financials or had inadequate documentation.
Officials also flagged red flags such as common addresses and directors across multiple entities, which could indicate a structured effort to obscure ownership and accountability.
The money laundering investigation is based on at least two FIRs filed by the Central Bureau of Investigation (CBI), and reports from key institutions including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and the Bank of Baroda.
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These findings collectively suggest a coordinated scheme to defraud banks, investors, shareholders, and public institutions by siphoning off public funds, the sources added.
The ED’s case is also said to incorporate findings from a Securities and Exchange Board of India (SEBI) report on Reliance Home Finance Limited (RHFL), which noted a sharp increase in corporate loans — from Rs. 3,742.6 crore in FY 2017-18 to Rs. 8,670.8 crore in FY 2018-19 — raising further questions about the group’s financial practices during that period.
