The Enforcement Directorate (ED) has searched 35 premises linked to the Reliance Anil Ambani Group in connection with an investigation into alleged money laundering and diversion of public funds.
The ED alleges that the group executed a “well-planned” scheme to siphon off bank loans worth ₹3,000 billion from YES Bank between 2017 and 2019 through several shell companies.
Entities of the Anil Ambani-led Reliance Group are also accused of paying bribes to YES Bank officials prior to loan disbursements. The approvals of these loans allegedly violated the bank’s internal protocols.
Several firms in the Anil Ambani group – he is the younger brother of billionaire Mukesh Ambani – have entered bankruptcy proceedings since 2017.
YES Bank, which had significant exposure to the group, was declared insolvent in 2020 and subsequently rescued by a consortium of Indian lenders under a restructuring plan approved by the Reserve Bank of India. Japan’s Sumitomo Mitsui Banking Corp is currently seeking a 20 percent stake in the bank, though the deal is awaiting regulatory clearance.
The ED's probe also revealed serious irregularities in YES Bank’s lending practices, including loans granted to financially weak firms, the backdating of credit memoranda, evergreening of loans to avoid classifying them as non-performing, and misrepresentation of financial data.
YES Bank’s former promoter, Rana Kapoor, was charged with bank fraud in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in Mumbai.
Anil Ambani group entities have faced multiple regulatory actions in recent years. In August 2024, markets regulator Sebi barred Anil Ambani and 24 others from accessing the securities market for five years, citing fund diversion from Reliance Home Finance.
Shares of Reliance Infrastructure and Reliance Power fell as much as 5 per cent on Thursday following reports of the latest investigation.
