Winning Bizness Desk

Mumbai. The Enforcement Directorate (ED) has completed its three-day-long search at over 35 locations related to Anil Ambani’s Reliance Group. The raids began on July 24 and ended on Sunday. Around 50 companies were covered in this operation. Over 25 individuals were questioned during the process. The raids were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA) in Delhi and Mumbai, involving alleged fraud in ₹3000 crore loans from Yes Bank.

Reliance firms say no business impact

Reliance Power and Reliance Infrastructure issued statements through stock exchange filings stating that the ED’s actions will have no impact on their business, financial health, or shareholders. The companies assured that they have cooperated fully with the authorities and will continue to do so. They clarified that the investigation relates to old transactions involving other group firms, not them.

Action based on multiple agency reports

The ED action is based on two FIRs filed by the CBI and information from agencies like SEBI, National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA). These inputs suggested serious financial irregularities, prompting the investigation into alleged fund diversion and misreporting by entities linked to the Anil Ambani-led group.

Loans allegedly diverted to shell firms

According to the ED, between 2017 and 2019, Anil Ambani-linked companies received around ₹3000 crore in loans from Yes Bank. These funds were allegedly diverted to shell companies or other group entities. There are claims that key Yes Bank officials may have accepted bribes. The loans were granted without proper checks and due diligence, with some companies using the same directors and addresses.

CBI investigating Yes Bank’s role too

The Central Bureau of Investigation (CBI) had already filed two FIRs in this matter. These cases are related to loans given to Reliance Home Finance and Reliance Commercial Finance. Yes Bank’s former CEO Rana Kapoor is named in both cases. Following this, several financial institutions also provided data to ED for further inquiry.

Stocks fall and fraud tag from SBI

Following the raids, Reliance Infrastructure and Reliance Power stocks dropped nearly 10% in two days. In a separate case, the State Bank of India (SBI) had earlier labeled Anil Ambani and Reliance Communications as “fraudsters.” According to SBI, ₹31,580 crore in loans were misused, with ₹13,667 crore used to repay other firms’ loans and ₹12,692 crore transferred within group entities. SBI is planning to file a CBI complaint, while insolvency proceedings are already ongoing at NCLT Mumbai.

7 Key Takeaways from the Case:

• ED raided 35 locations linked to Anil Ambani's group.
• Raids were over a ₹3000 crore loan fraud from Yes Bank.
• Reliance Power and Infrastructure denied any business impact.
• Funds were allegedly diverted to shell or group companies.
• CBI had already filed FIRs in the case.
• SBI declared Anil Ambani and RCom as fraud entities.
• Stocks of Ambani-linked firms fell nearly 10% after raids.