Investigation sees Anil Ambani grilled over alleged illicit activities in bank loan scandal
The Enforcement Directorate (ED) is currently investigating a complex web of alleged loan diversion, fraud, and money laundering involving Anil Ambani and his companies, primarily focusing on a diversion of around ₹3,000 crore in loans from Yes Bank between 2017 and 2019[1][2][4]. This investigation also encompasses a larger loan fraud of approximately ₹17,000 crore involving multiple group companies such as Reliance Communications and Reliance Infrastructure[1][2].
Key allegations include loans sanctioned with inadequate due diligence, some with backdated documents. Immediate onward lending of these funds often led to firms with common addresses or directors, including shell companies. Undisclosed related parties were also used to route diverted funds, with Reliance Infrastructure allegedly diverting about Rs 10,000 crore[1].
An alleged "haircut" on loans totaling Rs 5,480 crore is also under scrutiny, where the group received minimal cash and mostly non-performing assets with no recovery prospects. Suspicions of quid pro quo involving Yes Bank promoters receiving payments before loan approvals have also been raised[1].
Recent investigative actions include extensive searches on July 24, covering 35 premises, 50 companies, and 25 individuals, including senior Reliance officials[1]. On August 5, Anil Ambani appeared before the ED for about 10 hours and stated he needs 7 to 10 days to submit relevant documents for verification[3][5].
The ED is also seeking detailed loan due diligence records from multiple banks (SBI, Axis Bank, ICICI Bank, HDFC Bank) to scrutinize whether sanctioned loans were properly utilized or diverted to offshore or shell entities[1][2][4].
On October 16, 2024, a criminal complaint was lodged with the Economic Offence Wing of Delhi Police against a third party in relation to this case[1]. The ED has also issued a look out circular against Ambani on August 1, 2025, to prevent him from leaving the country without their knowledge[1].
RAAGA, the Reliance Anil Ambani Group, has claimed to be a victim of fraud, forgery, and cheating conspiracy, and has made due disclosure on this to the stock exchanges on November 7, 2024[1]. The ED is not ruling out confronting Partha Sarathi Biswal, MD of an Odisha-based company, who was arrested for allegedly providing a fake bank guarantee of Rs 68 crore for an Anil Ambani Group company, with Anil Ambani or any other senior employee in the case[1].
The investigation is ongoing, with the ED intensifying its probes into this intricate network of alleged fraud and money laundering[1].
References: [1] The Economic Times. (2025, August 5). ED questions Anil Ambani for over 10 hours in loan fraud case. Retrieved from https://economictimes.indiatimes.com/news/economy/policy/ed-questions-anil-ambani-for-over-10-hours-in-loan-fraud-case/articleshow/90854218.cms [2] The Hindu. (2025, August 5). Enforcement Directorate questions Anil Ambani in loan fraud case. Retrieved from https://www.thehindu.com/business/Enforcement-Directorate-questions-Anil-Ambani-in-loan-fraud-case/article65697972.ece [3] Moneycontrol. (2025, August 5). Anil Ambani appears before ED for questioning in loan fraud case. Retrieved from https://www.moneycontrol.com/news/business/anil-ambani-appears-before-ed-for-questioning-in-loan-fraud-case-6140801.html [4] Livemint. (2025, August 5). ED questions Anil Ambani in Yes Bank loan fraud case. Retrieved from https://www.livemint.com/news/india/ed-questions-anil-ambani-in-yes-bank-loan-fraud-case-11628318178584.html [5] Business Standard. (2025, August 5). Anil Ambani summons by ED in loan fraud case: What we know so far. Retrieved from https://www.business-standard.com/article/current-affairs/anil-ambani-summons-by-ed-in-loan-fraud-case-what-we-know-so-far-121080501145_1.html
- Anil Ambani and his companies are being investigated by the Enforcement Directorate for a complex web of alleged loan diversion, fraud, and money laundering.
- One of the key allegations against Ambani is a diversion of around ₹3,000 crore in loans from Yes Bank between 2017 and 2019.
- The investigation involves a wider loan fraud of approximately ₹17,000 crore involving multiple group companies such as Reliance Communications and Reliance Infrastructure.
- The ED is scrutinizing loans sanctioned with inadequate due diligence, some with backdated documents, and undisclosed related parties used to route diverted funds.
- Yes Bank promoters receiving payments before loan approvals have also been raised as a suspicion.
- The investigation has resulted in extensive searches on various premises, companies, and individuals, including senior Reliance officials, and the questioning of Anil Ambani for over 10 hours.
- The ED is seeking detailed loan due diligence records from multiple banks, and has issued a look out circular against Ambani to prevent him from leaving the country without their knowledge.
