Industrialist Anil Ambani appears before ED in bank loan 'fraud' case
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New Delhi: Reliance Group Chairman Anil Ambani appeared before the Enforcement Directorate (ED) on Tuesday as part of a money laundering investigation into alleged large-scale bank loan fraud by his group companies, according to government sources.
Ambani, 66, appeared at the central agency's office in central Delhi about 11 a.m. to record a statement under the Prevention of Money Laundering Act (PMLA).
His summons followed ED searches at 35 premises belonging to 50 companies and 25 individuals, including senior executives of his business group, in Mumbai on 24 July.
The investigation centres on alleged financial irregularities and the diversion of over Rs 17,000 crore in bank loans by several Anil Ambani group entities, including Reliance Infrastructure (R Infra).
One key allegation involves the diversion of approximately Rs 3,000 crore in loans granted by Yes Bank between 2017 and 2019. Sources said the ED is probing a possible quid pro quo arrangement, where Yes Bank promoters allegedly received money in their companies shortly before the loans were sanctioned.
The agency suspects serious irregularities in Yes Bank’s loan approvals, including back-dated credit approval notes, investments without due diligence, and violations of the bank’s internal credit policy.
Loans were reportedly channelled into group companies and shell entities, with some borrowers sharing common addresses and directors, weak financials, or lacking proper documentation.
The ED’s case stems from at least two FIRs filed by the CBI and reports submitted by regulatory bodies such as SEBI, the National Housing Bank, the National Financial Reporting Authority, and the Bank of Baroda.
According to sources, these reports reveal a “well-planned and premeditated scheme” to divert public money, defrauding banks, investors, shareholders, and institutions.
Another allegation, based on a SEBI report, claims R Infra diverted funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies via a firm named CLE. R Infra allegedly failed to disclose CLE as a related party, thereby bypassing shareholder and audit approvals.
A Reliance Group spokesperson denied any wrongdoing, stating the Rs 10,000 crore diversion claim was a decade-old matter. The group said its real exposure was Rs 6,500 crore, publicly disclosed in financial statements and a 9 February 2025 disclosure.
The company also said it had settled the matter through mandatory mediation led by a retired Supreme Court judge, with full recovery of the Rs 6,500 crore exposure, and clarified that Ambani has not served on R Infra’s board since March 2022.
The Union government recently told Parliament that the State Bank of India had declared RCOM and Anil Ambani as “fraud” and was preparing to lodge a complaint with the CBI.
The ED is also probing a separate Rs 1,050 crore loan fraud case between RCOM and Canara Bank, along with suspicions involving undisclosed foreign bank accounts and assets.
The agency is further examining a potential quid pro quo involving Rs 2,850 crore invested by Reliance Mutual Fund in Additional Tier-1 (AT-1) bonds—high-risk perpetual bonds issued by banks to bolster capital.
