ED summons Anil Ambani in ₹10,000 crore loan diversion probe after raids

Enforcement Directorate (ED) summons Reliance Group Chairman Anil Ambani over alleged ₹10,000 cr loan fraud; probe reveals fund diversion, shell firms, Yes Bank link

This story has been updated.  Chairman of the Reliance Group, Anil Ambani, has been summoned by the Enforcement Directorate (ED) to appear for questioning on August 5 in connection with a money laundering case involving alleged loan fraud and diversion of over ₹10,000 crore by his group companies. Some media reports suggest the amount may be high as ₹17,000 crore.

 

According to a report by news agency PTI, citing sources familiar with the matter, the 66-year-old industrialist has been asked to appear at the ED’s headquarters in Delhi. His statement will be recorded under the provisions of the Prevention of Money Laundering Act (PMLA). 

Reliance responds to ₹10,000 crore fund diversion claim

Amid scrutiny over a supposed diversion of ₹10,000 crore, Reliance Group sources called the figure "sensationalised" and not rooted in fact.

 

 

"Reliance Infrastructure publicly disclosed this matter on February 9, 2025, and Sebi did not make any independent discovery," a company spokesperson said.

 

"Reliance Infra had an exposure of ₹6,500 crore. The allegation that the diverted amount is ₹10,000 crore only serves to sensationalise the magnitude and is not based on facts."

 

The company emphasised that it "pursued recovery of its dues in this matter,” explaining that “through mandatory mediation proceedings conducted by a retired Supreme Court Judge and filed before the Bombay High Court, Reliance Infra arrived at a settlement to recover its entire exposure of ₹6,500 crore.”

 

Widespread ED raids on Anil Ambani Group firms

Between July 24 and 26, the ED raided more than 35 locations in Mumbai and Delhi, targeting over 50 companies and 25 individuals tied to the Reliance Anil Dhirubhai Ambani Group (RAAGA).

 

The focus: Suspicious loans, especially ₹3,000 crore given by Yes Bank between 2017 and 2019.

 

Officials believe much of the money was funnelled to shell companies and shady entities with little financial credibility. Some shared addresses and directors, suggesting a coordinated fraud.

 

According to news reports, the investigation stems from multiple sources, including at least two FIRs registered by the Central Bureau of Investigation (CBI), and reports submitted by the Securities and Exchange Board of India (Sebi), National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda.

 

A source within the agency had earlier told Business Standard that the initial probe has uncovered a "well-planned and thought-out scheme" involving fake paperwork, backdated loan approvals, and possible bribes to Yes Bank execs. The ED suspects loans were rushed through without proper checks, violating internal policies.

 

Reliance responds to ED raids

Following the raids, Reliance Power and Reliance Infrastructure, both listed entities under the broader group, issued statements denying any operational or financial impact. They clarified that Anil Ambani does not serve on the boards of either company and that the media reports pertain to transactions involving Reliance Communications (RCOM) and Reliance Home Finance Limited (RHFL), which are independent and currently undergoing resolution proceedings.

 

Reliance Infrastructure is also under scrutiny for allegedly diverting large sums through a shadow entity, dubbed "C Company," without telling shareholders or auditors. RHFL, another group firm, is under fire for rapidly expanding risky loans and issuing money without proper approval or documentation.

 

SBI labels RCOM as a fraud company

Just before the ED raids, the State Bank of India officially labelled Anil Ambani and Reliance Communications as “fraud” entities, and told Parliament it’s preparing a case for the CBI.

 

The ED is also probing alleged misuse of funds related to investments in Additional Tier-1 (AT-1) bonds worth ₹2,850 crore by Reliance Mutual Fund, instruments considered riskier than standard bonds due to their perpetual nature and higher interest rates.