ED to widen alleged Rs 17,000 crore bank-fraud investigation probe

This report has been updated to correct a few inadvertent errors in the previous version

The Enforcement Directorate (ED) is set to widen its investigation in the ₹17,000 crore alleged money-laundering case involving loans extended by Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL), and summon their key allies. The agency is also likely to call for questioning former senior officials of Canara Bank and Bank of Baroda. 

 

“The ED has already called Sanjay Dangi along with other credit committee members of Reliance Communications Limited (RCom) and RHFL. Investigation is ongoing, we may call more people into the case,” a senior ED official told Business Standard on the condition of anonymity. 

 

Dangi, who is a “stock market operator” and an “HNI investor”, has substantial stake in RCFL, RHFL, and Reliance Power. Dangi is at present a director at the Authum Investment & Infrastructure Ltd. 

 

Reliance Group Chairman Anil Ambani, who appeared before the ED on Tuesday, is expected to be called again within the next 10 days for further questioning in this alleged bank fraud case. “In the last visit, Ambani asked for more time for detailing. However, after interrogation of his other close aides, the ED will call him again in the next 10 days,” the official said.

 

 

The source added that the investigators are examining the role of Canara Bank and Bank of Baroda, after it emerged that despite the accounts concerned being declared as non-performing assets (NPAs), no first information report was lodged. This procedural lapse has triggered fresh suspicion within the agency.

 

“The then senior management of both the banks (in 2016) will be questioned to determine why no criminal complaint was initiated,” the senior ED official said.

 

An email sent to Bank of Baroda, Canara Bank, and Authum group remained unanswered till the time of going to the press.

 

In a reply to a query, a Reliance group spokesperson said: “RHFL and RCFL extended loans to certain private companies of the promoter of Yes Bank. These loans were sanctioned on merit, after following due process, and were duly approved by a professional credit committee. These loans were fully secured and were fully repaid even prior to the maturity date, with full interest, so the outstanding is zero, and there is no loss to RHFL or RCFL. The above was publicly disclosed on April 1, 2023. Canara Bank, which was part of the lenders consortium along with SBI, unconditionally withdrew the “fraud” classification of RCom’s account on July 10, 2025, before the Bombay High Court.”

 

The agency’s investigation has further widened to cover the alleged illegal diversion of loans worth ₹3,000 crore from Yes Bank between 2017 and 2019. Former Yes Bank Chief Executive Officer (CEO) Rana Kapoor and his wife Bindu Kapoor are under the scanner in this connection.

 

  ED officials have already visited the Kapoors’ residence but were unable to meet them. “Summons will be issued to both of them soon,” the source added.

 

Between July 24 and July 26, the ED conducted raids at more than 35 locations across Mumbai and Delhi. One of the main concerns is about the ₹3,000 crore Yes Bank loans, which are believed to have been siphoned off to shell companies and non-genuine entities. 

 

On August 1, the ED issued a Look Out Circular (LOC) against Anil Ambani to stop him from leaving the country while the investigation is ongoing. An LOC is typically issued to ensure that individuals under probe are available for questioning and do not flee abroad.

 

The probe draws from two CBI FIRs, and inputs from Sebi, the National Housing Bank, the National Financial Reporting Authority, and Bank of Baroda.

 

A source had earlier said the case involves forged documents, backdated approvals, and possible bribes to Yes Bank officials. Loans were allegedly disbursed in haste, without proper checks.