Mumbai: The Enforcement Directorate (ED) on Thursday carried out search operations at multiple locations associated with companies under the Reliance Anil Ambani Group of Companies (RAAGA), as part of its investigation into alleged money laundering offences, sources told The Free Press Journal.
Searches are currently underway at 35 locations, covering over 50 companies and more than 25 individuals, under Section 17 of the Prevention of Money Laundering Act (PMLA). Notably, the Mumbai residence of businessman Anil Ambani is not part of the search operation, sources clarified.
About ED's Action
The ED's action is based on two FIRs registered by the Central Bureau of Investigation (CBI). In parallel, the Income Tax Department and the Securities and Exchange Board of India (SEBI) are reportedly examining the financial dealings of several companies linked to the Reliance Anil Ambani Group of Companies (RAAGA) for alleged regulatory and tax-related violations.
In addition,Ambani is facing a separate investigation under the Foreign Exchange Management Act (FEMA) for suspected foreign exchange violations, according to officials.
Sources said the ED’s current probe was initiated following inputs received from multiple institutions, including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and the Bank of Baroda.
At the heart of the investigation is a suspected financial fraud linked to Yes Bank Ltd, with the ED uncovering evidence of loan diversions amounting to approximately Rs 3,000 crore between 2017 and 2019. According to officials, ED’s probe suggests that, prior to the disbursal of these loans to companies under the Reliance Anil Ambani Group (RAAGA), entities affiliated with Yes Bank’s promoters received funds in their private concerns, indicating a possible collusive arrangement.
Sources said preliminary findings point to a “well-planned and deliberate scheme” to divert public funds by misleading banks, shareholders, and regulatory institutions. A key aspect of the investigation is the suspected bribery of senior Yes Bank officials, including the bank’s promoter, in exchange for sanctioning large unsecured loans to firms linked to RAAGA.
The ED has unearthed multiple irregularities in the loan sanctioning process, pointing to systemic lapses and potential misuse of banking procedures. Key findings include the use of backdated Credit Approval Memorandums (CAMs), absence of due diligence or credit analysis, and instances where loans were disbursed on or even before the formal application date.
The agency has also flagged the diversion of funds to shell companies and entities linked to promoters, as well as the presence of borrowers with common directors and registered addresses. These patterns, officials said, suggest a broader strategy of “evergreening” loans, a practice wherein fresh loans are issued to repay earlier ones, thereby concealing defaults and artificially maintaining asset quality.
The SEBI has reportedly submitted its findings in relation to Reliance Home Finance Ltd (RHFL), highlighting a sharp increase in corporate loan exposure from Rs 3,742.6 crore in 2017–18 to Rs 8,670.8 crore in 2018–19. The ED is currently examining possible irregularities in loan approvals, expedited disbursals, and deviations from established procedures.
ED officials believe the group engaged in a systematic plan to mislead investors, banks, and regulators, diverting public funds for unauthorized purposes. Several senior executives of the group are also being questioned.
This follows SBI’s move on June 13, 2025, to declare Anil Ambani and Reliance Communications (RCom) as ‘fraud’ under RBI guidelines. SBI reported the case to the RBI and is preparing to file a complaint with the CBI.
RCom, already under CIRP, owes SBI Rs 2,227.64 crore in principal and Rs 786.52 crore in guarantees. SBI has also initiated personal insolvency proceedings against Anil Ambani.
Reliance Power & Reliance Infrastructure Issue Statement
Reliance Power and Reliance Infrastructure have clarified that recent ED actions have no impact on their business operations, financials or stakeholders. Both firms have confirmed their independence from Reliance Communications (RCOM) and Reliance Home Finance (RHFL), which are over a decade old and currently undergoing legal proceedings. Anil Ambani is no longer on their boards. Company continues to focus on its business plans and remains committed to creating value for all stakeholders, mentioned the statement.
