In a sweeping action, the directorate of enforcement (ED) on Thursday conducted search operations at more than 35 locations linked to Anil Ambani’s Reliance Anil Dhirubhai Ambani (Reliance ADA) group companies, as part of a money laundering probe tied to the Rs3,000 crore Yes Bank loan fraud.
According to media reports, the agency’s raids targeted over 50 companies and more than 25 individuals, marking a major escalation in the ongoing investigation into alleged large-scale financial irregularities, including loan diversion, procedural violations and bribery of bank officials.
Quoting sources,
a report from NDTV says, ED has detected an 'illegal quid pro quo arrangement' as part of which Yes Bank promoters allegedly received payments in privately held concerns just before sanctioning the loans.
"The probe has found 'serious violations' in the loan approval process. Credit approval memorandums were backdated and investments were pushed without due diligence or credit analysis in violation of the bank's policies. Also, loan funds were routed to shell companies and other group entities in breach of the original loan terms," the report says.
According to
a report from Economic Times (ET), the searches follow two first information reports (FIRs) registered by central bureau of investigation (CBI) and inputs shared by agencies including National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA) and Bank of Baroda.
"According to the ED, preliminary investigations show that loans worth around Rs3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell firms and other group entities. Investigators have also found evidence suggesting possible bribery of Yes Bank officials, including its promoter," the report says.
ED reportedly uncovered a well-orchestrated scheme designed to defraud public institutions and investors by securing massive loans from Yes Bank and subsequently diverting the funds to shell companies and promoter-linked entities. The alleged fraudulent activities occurred between 2017 and 2019, when Yes Bank sanctioned and disbursed loans amounting to Rs3,000 crore to Reliance ADA group companies.
The agency suspects a quid pro quo arrangement in which Yes Bank promoters received funds in their private concerns shortly before loan approvals, pointing to possible bribery. The loans, investigators say, were cleared without proper due diligence, often disbursed before or on the same day as the application, and routed through a web of interconnected companies with common directors and addresses.
Sources close to the investigation said that the credit approval memorandums (CAMs) for many of these loans were backdated and that no proper credit analysis was carried out, a direct breach of the Bank’s internal credit policies. In many cases, financials were misrepresented and group corporate loans were evergreened to avoid classification as non-performing assets.
Regulators marked several red flags in the lending pattern, including loans to companies with weak financials, lack of supporting documentation, misrepresentation of borrower credentials and loan proceeds diverted to other promoter-controlled companies.
In particular, SEBI’s findings on Reliance Home Finance Ltd (RHFL), a key Reliance ADA group entity, revealed that its corporate loan book jumped from Rs3,742.60 crore in FY17-18 to Rs8,670.80 crore in FY18-19, raising serious concerns about compliance and governance practices.
ED has invoked Section 17 of the PMLA, allowing search and seizure without prior notice, a power typically used in grave economic offences. Officials believe this operation may expose wider systemic misuse of financial institutions by promoter-driven companies.
Thursday’s raids are part of a larger crackdown as the agency continues to unravel layers of complex financial transactions linked to Anil Ambani’s business empire. The ongoing probe could have wider implications for corporate governance, regulatory oversight and banking accountability in India’s financial ecosystem.
Further investigation is underway, with officials indicating that more assets and individuals may soon come under scrutiny.
Earlier this week, the Union government confirmed in Parliament that State Bank of India (SBI) has officially classified the loan account of Reliance Communications Ltd (RCom) as 'fraud' and has reported the name of the company's former director Anil Ambani to Reserve Bank of India (RBI), following due regulatory process.
SBI’s total exposure to the troubled telecom company stands at over Rs3,000 crore. This includes Rs2,227.64 crore in fund-based principal outstanding, along with Rs786.52 crore in non-fund-based bank guarantees, the government says.
RCom, once a key player in India’s telecom sector, is undergoing corporate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). SBI's decision to declare the account as fraud marks a significant development in the prolonged financial saga surrounding the Anil Ambani-led company and comes years after the account was first declared a non-performing asset (NPA) in 2017, retrospectively dated to August 2016. (Read:
Anil Ambani Named in Fraud Account by SBI; Rs3,000 Crore Exposure Confirmed by Govt in Parliament)
