Reliance Group Chairman Anil Ambani appeared before the Enforcement Directorate (ED) on Tuesday in connection with a money laundering investigation linked to suspected bank loan fraud by his group companies. The industrialist arrived at the central agency’s Delhi office around 10:50 am in an electric vehicle.
His statement is being recorded under the Prevention of Money Laundering Act (PMLA), according to a PTI report citing official sources.
The summons follows extensive searches conducted by the ED on July 24 at 35 locations associated with 50 companies and 25 individuals, including executives from Ambani’s business empire. The probe agency has also issued a Look Out Circular (LOC) against Ambani, a standard procedure in major banking fraud cases, to prevent his exit from the country during the investigation.
Allegations Of Loan Diversion And Irregularities
The case revolves around allegations of financial mismanagement and loan diversions amounting to more than Rs 17,000 crore involving several Anil Ambani Group firms, including Reliance Infrastructure (R Infra). One of the central issues under scrutiny is a loan of approximately Rs 3,000 crore reportedly extended by Yes Bank to Ambani’s companies between 2017 and 2019.
Investigators suspect a quid pro quo arrangement, where Yes Bank promoters allegedly received funds in their personal companies before approving the loans. The ED is probing this suspected bribery angle and possible manipulation of the bank’s internal processes, such as back-dated approvals and inadequate credit assessments.
Linked Arrests And SEBI Findings
In a related matter, the ED recently arrested Odisha-based businessman Partha Sarathi Biswal for allegedly furnishing a fake Rs 68 crore bank guarantee for a Reliance Group entity. Sources in the report suggest Biswal may be confronted with Ambani during questioning. Investigators are also looking into loans granted to financially weak entities, many sharing common directors and addresses, pointing to a possible web of shell companies.
Additionally, a SEBI report alleges that R Infra routed funds under the guise of inter-corporate deposits through a company named CLE, which was not disclosed as a “related party”—potentially bypassing shareholder and audit committee oversight.
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Reliance Group Denies Wrongdoing
In response to the allegations, a Reliance Group spokesperson stated that claims of Rs 10,000 crore fund diversion date back a decade and that the company’s actual exposure was Rs 6,500 crore, fully disclosed in its financial statements as of February 9, 2025.
The company emphasised that through court-mediated arbitration, it had settled to recover the entire exposure amount. Furthermore, it clarified that Anil Ambani has not held a board position at Reliance Infrastructure since March 2022.
Wider Implications And Ongoing Probes
The ED’s case draws from at least two CBI FIRs and reports from agencies such as SEBI, the National Housing Bank, the National Financial Reporting Authority, and Bank of Baroda. These documents suggest a deliberate scheme to mislead banks and defraud shareholders and public institutions.
The Union government recently informed Parliament that the State Bank of India had classified Reliance Communications (RCOM) and Ambani as “fraud” entities. A separate ED investigation is also underway regarding a Rs 1,050 crore loan fraud involving RCOM and Canara Bank, along with alleged undisclosed offshore assets.
Additionally, Reliance Mutual Fund’s investment of Rs 2,850 crore in Additional Tier-1 (AT-1) bonds is under the scanner for possible quid pro quo arrangements. These bonds are high-risk instruments issued by banks to boost their capital and typically carry elevated returns.
