The Enforcement Directorate continued its intensive searches against companies linked to Anil Ambani’s Reliance Group in Mumbai for the third consecutive day on Saturday, as part of a sweeping money laundering investigation tied to alleged financial irregularities amounting to thousands of crores.
Search operations, which began on 24 July, are being carried out under the Prevention of Money Laundering Act (PMLA), focusing on a suspected ₹3,000 crore bank loan fraud allegedly involving loan diversion and shell company routing.
Agency officials confirmed that over 35 locations had been covered in Mumbai since Thursday, with searches still active at a few premises. These include offices and residences associated with 50 companies and 25 individuals, including senior executives from firms linked to Anil Ambani.
The probe centres around loans granted by Yes Bank to various group companies between 2017 and 2019. According to officials, the loans were allegedly misused and diverted to a web of interconnected companies, some of which have been described as “bogus” or shell entities.
The agency suspects a quid pro quo arrangement, with Yes Bank promoters allegedly receiving payments through associated concerns before the loans were sanctioned. “The ED is investigating this nexus of 'bribe' and the loan,” a source said.
Furthermore, serious irregularities in the loan approval process have come under the scanner, including allegations of back-dated credit approval documents, investments sanctioned without due diligence, and loans issued to financially weak entities with shared addresses and directors.
A web of interlinked entities and compromised credit standards, officials said, indicates a deliberate attempt to siphon public funds. The money laundering case draws from multiple sources, including two FIRs filed by the Central Bureau of Investigation and reports shared by the National Housing Bank, Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda.
Also read: ED raids Anil Ambani-linked sites in Mumbai after SBI fraud tag
“These reports suggest a well-planned and thought after scheme to divert or siphon off public money by cheating banks, shareholders, investors and other public institutions,” the official noted.
Reliance Power and Reliance Infrastructure, both part of the broader Ambani Group, issued statements on Thursday asserting that the ED’s actions had “absolutely no impact” on their operations or stakeholders.
“The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old,” the companies said in a filing to stock exchanges.
They further clarified that Anil Ambani held no board positions in either company and that there was “no business or financial linkage” with RCOM or RHFL. “Any action taken against RCOM or RHFL… has no bearing or impact on the governance, management, or operations of either Reliance Power or Reliance Infrastructure,” they added.
However, officials confirmed that the ED is examining an alleged ₹1,050 crore loan fraud involving RCOM and Canara Bank, as well as undisclosed foreign bank accounts and overseas assets. Investments made by Reliance Mutual Fund in high-risk Additional Tier-1 (AT-1) bonds to the tune of ₹2,850 crore are also being probed for possible quid pro quo arrangements.
A separate alleged loan fund diversion of ₹10,000 crore involving Reliance Infrastructure has also come under scrutiny.
The probe’s expanding scope and depth underscore the gravity of concerns surrounding past transactions, including those flagged by SEBI in its report on RHFL, now also under review by the Enforcement Directorate.
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