https://timelinedaily.com/business/ed-raids-anil-ambani-linked-premises-in-major-money-laundering-probe-involving-over-50-firms

The Enforcement Directorate (ED) on Wednesday launched extensive search operations across Delhi and Mumbai, targeting premises linked to Anil Ambani, the chairman of the Reliance Group.

The raids are part of an ongoing money laundering probe based on two FIRs registered by the Central Bureau of Investigation (CBI), which allege significant financial misconduct involving a network of companies and high-ranking individuals.

According to highly placed sources, ED officials conducted coordinated raids at over 35 locations, sifting through documents and digital records associated with more than 50 companies believed to be connected to the Reliance Anil Dhirubhai Ambani Group (RAAGA).

Simultaneously, over two dozen individuals—including financial intermediaries, company executives, and banking officials—were questioned as part of the operation.

Preliminary findings from the ED suggests the existence of a well-orchestrated scheme aimed at misusing public money through manipulation of corporate structures, loan fraud, and bribery of senior bank personnel.

The investigation is centred on large loans, most of them unsecured, granted by Yes Bank Ltd between 2017 and 2019 to a group of companies under RAAGA, totalling close to Rs 3,000 crore.

Officials allege that there was an illicit quid pro quo arrangement, whereby key promoters of Yes Bank received payments through privately held entities just ahead of loan approvals.

The probe points to instances where funds were routed through shell companies, and loans were sanctioned without proper financial due diligence.

Red flags flagged by investigators include: Disbursement of loans to firms with questionable financial strength, use of common directors, addresses, and overlapping shareholding patterns, missing documentation in sanction records, evidence of loan evergreening, where new loans were allegedly used to repay existing ones.

These practices, sources say, not only misled lenders and regulators but may have been used to divert public funds into personal or unrelated commercial ventures.

The ED is closely examining the role of former Yes Bank executives and promoters, suspecting they may have personally benefited in exchange for facilitating the disbursement of large loans without adequate collateral. This includes scrutiny of financial transactions between Yes Bank’s top brass and entities tied to the Ambani-led companies.

The investigation is also drawing from inputs submitted by various regulatory agencies. The National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda have all shared findings that corroborate signs of misgovernance and irregular loan activity.

One particular area of concern is Reliance Home Finance Limited (RHFL). A detailed report from SEBI reveals that RHFL’s corporate loan book more than doubled in just one financial year, from Rs 3,742 crore in FY18 to Rs 8,670 crore in FY19, raising questions about lending practices and internal controls during that period.

Adding to the complexity of the case is the classification of Reliance Communications (RCom) and Anil Ambani’s personal account as “fraudulent” by the State Bank of India (SBI).

While the bank had originally labelled these accounts as fraud back in November 2020, a CBI complaint followed in January 2021. However, a Delhi High Court stay order at the time temporarily halted proceedings.

With the current ED action, that legal pause appears to have been overtaken by new developments, indicating that law enforcement agencies are now reactivating previously stalled cases based on fresh evidence and cross-agency cooperation.

So far, there has been no official comment from Anil Ambani or the Reliance Group regarding the ongoing raids. Industry observers note that while Ambani has kept a relatively low public profile in recent years.

The probe comes at a time when Indian regulators are under pressure to demonstrate firm action against corporate fraud, especially in cases involving public sector banks and retail investors.