In a significant development, the Enforcement Directorate (ED) has launched a sweeping investigation into alleged financial irregularities involving Reliance Group Chairman Anil Ambani. As part of the probe, ED officials carried out extensive raids across 35 premises in Mumbai and Delhi, targeting more than 50 companies and questioning over 25 individuals connected to the Reliance Anil Ambani Group (RAAGA).
The searches stem from two FIRs registered by the Central Bureau of Investigation (CBI), which raised alarms over large-scale financial misconduct and potential laundering of public funds. According to sources familiar with the matter, the operation has uncovered what investigators describe as a “systematic and calculated strategy” to divert bank loans and mislead investors and regulatory authorities.
Links to Yes Bank Loan Scandal
At the heart of the investigation lies the Yes Bank loan fraud case. Preliminary ED findings suggest that loans amounting to approximately ₹3,000 crore were sanctioned by Yes Bank between 2017 and 2019 to various entities under the Reliance Group. However, a significant portion of these funds were allegedly routed through shell companies or diverted to related businesses lacking financial credibility.
Officials have highlighted concerning patterns during the probe, including the use of common directors and registered addresses across borrowing firms, lack of due diligence in loan sanctioning, and inadequate documentation. There are also indications of “loan evergreening,” a practice where fresh loans are issued to repay old ones, masking defaults and financial stress.
Bribery Allegations and Regulatory Involvement
The ED’s investigation is also exploring possible instances of bribery involving former executives of Yes Bank. It is suspected that certain bank officials, including its former promoters, were paid off to facilitate large unsecured loans without proper checks. These revelations have added a new layer of complexity to the already high-profile case.
The ongoing probe is being conducted in collaboration with several regulatory and financial bodies, including the Securities and Exchange Board of India (SEBI), the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).
SBI Declares Anil Ambani as ‘Fraudulent Promoter’
This crackdown comes just days after the State Bank of India (SBI) declared Reliance Communications and its promoter-director Anil Ambani as ‘fraudulent’—a classification that signals serious concerns within India’s financial system about corporate governance and transparency in major business houses.
Notably, Ambani’s personal residence was not part of the ED’s search operations. However, numerous offices and premises associated with his business interests were thoroughly examined by teams from both Mumbai and Delhi.
What Lies Ahead
With multiple financial and regulatory agencies now actively involved, the situation marks a turning point in the broader crackdown on corporate fraud in India. As the ED continues to gather evidence and unravel the financial web surrounding RAAGA companies, further disclosures are expected in the coming days.
This case could have far-reaching implications—not only for the Ambani-led entities but also for how financial institutions vet high-value corporate loans in the future.