Loan Fraud Case: Anil Ambani Joins ED Probe

Anil Ambani

Industrialist Anil Ambani on Tuesday appeared before the Enforcement Directorate in Delhi in connection with an alleged ₹17,000-crore loan fraud and money laundering case.

The 66-year-old businessman was summoned last week and is being questioned for the first time under the Prevention of Money Laundering Act (PMLA). His statement is expected to play a significant role in the ongoing investigation.

Raids & Investigation

Ambani’s deposition comes days after the ED conducted a massive search operation on July 24, targeting 35 locations, involving 50 companies and over 25 individuals linked to the Reliance Anil Dhirubhai Ambani Group (RAAGA). These searches followed a CBI FIR that initiated the money laundering probe.

Based on inputs from SEBI, National Housing Bank, NFRA, and Bank of Baroda, the ED is examining alleged fund diversion, shell companies, and regulatory violations.

Yes Bank Loan Scam Under the Scanner

A key focus of the probe is the ₹3,000-crore illegal loan diversion from Yes Bank between 2017 and 2019. Investigators allege that Yes Bank promoters received funds personally just before sanctioning loans to RAAGA entities. The ED has flagged serious violations such as back-dated credit approvals, absence of due diligence, loans disbursed before sanction, and misrepresentation of financials. A Look Out Circular was issued against Ambani on August 1 to prevent potential flight risk.

Alleged Fraud Across Group Companies

According to ED officials, Reliance Communications alone is accused of a ₹14,000-crore fraud, while Canara Bank was allegedly cheated of ₹1,050 crore. SEBI also alerted the agency about ₹2,850 crore invested by Reliance Mutual Fund in Yes Bank AT-1 bonds, which were later written off.

The agency is also investigating a sharp surge in corporate loans by Reliance Home Finance, from ₹3,742 crore in FY18 to ₹8,670 crore in FY19, allegedly without proper credit checks.

The ED further claims that Reliance Infrastructure diverted nearly ₹10,000 crore through an undisclosed related-party entity, referred to as “C Company.” Officials said this company was kept off the books to avoid shareholder approval and audit committee scrutiny, in violation of related-party transaction norms.

Despite a settlement, the ED alleges that only ₹4 crore was recovered in cash, while the rest was in the form of non-operational assets, making recovery virtually impossible.

Company Response & Clarification

In response, Reliance Infrastructure issued a statement clarifying that the net exposure was ₹6,500 crore, fully disclosed in financial statements over the past four years. The company said it had publicly disclosed the matter in February 2025 and settled dues through a court-monitored mediation process. It also clarified that Anil Ambani has not been on its board since March 2022.

Foreign Assets, Bribery & More Under Probe

Apart from the loan fraud, the ED is also examining suspected undisclosed foreign accounts and assets, possible instances of bribery involving bank officials, and alleged quid pro quo investments.

The case is shaping up to be one of the largest corporate financial scandals in recent years, involving public funds, regulatory lapses, and systemic fraud.