Anil Ambani, the chairman of the Reliance Group, appeared before the Enforcement Directorate (ED) in New Delhi on Wednesday for questioning in connection with a sprawling money-laundering investigation tied to alleged loan frauds exceeding ₹17,000 crore. Officials said the 66-year-old businessman’s statement was being recorded under the Prevention of Money Laundering Act (PMLA).
The summons followed extensive searches by the agency in July at 35 premises linked to Ambani’s companies, where investigators sought records on what they describe as systematic loan “diversion” across multiple group entities, including Reliance Infrastructure.
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Alleged Diversion of Bank Loans
At the heart of the case are allegations that loans sanctioned by Yes Bank between 2017 and 2019, amounting to about ₹3,000 crore, were illegally routed to Reliance companies. Investigators suspect that Yes Bank promoters received payments shortly before these loans were issued, raising questions about quid pro quo arrangements.
Sources said the ED is also probing broader irregularities in loan approvals, including backdated approvals, weak due diligence, and proposals passed in violation of standard credit policies. Officials added that loans may have been channelled to so-called “shell” entities with no significant financial standing.
Another allegation under scrutiny involves a Securities and Exchange Board of India (SEBI) report claiming that Reliance Infrastructure diverted funds through inter-corporate deposits to a company named CLE, which was not disclosed as a “related party.”
Wider Financial Exposure
The probe intersects with multiple regulatory and banking authorities. Reports by the National Housing Bank, SEBI, the National Financial Reporting Authority, and public-sector lenders like Bank of Baroda have already flagged weak financial practices and potential misrepresentation.
Meanwhile, Reliance Infrastructure has denied wrongdoing, noting that a disputed ₹10,000 crore loan transaction is a decade old and that its actual exposure was closer to ₹6,500 crore, already settled in court proceedings earlier this year. The company emphasized that Mr. Ambani has not served on its board since March 2022.
The ED is also examining other strands of alleged fraud: over ₹1,050 crore in loans from Canara Bank to Reliance Communications (RCOM), investments of ₹2,850 crore by Reliance Mutual Fund in high-risk AT-1 bonds, and possible undisclosed foreign assets.
For now, the investigation highlights the scale and complexity of corporate debt practices in India’s banking sector, and the widening scrutiny of one of the country’s most prominent business figures.
