The Enforcement Directorate (ED) continued its sweeping raids for the third consecutive day on July 26, 2025, targeting multiple entities linked to Anil Ambani’s Reliance Group in connection with an alleged ₹3,000 crore bank loan fraud and money laundering case. The searches, initiated on July 24, span over 35 locations in Mumbai, involving 50 companies and 25 individuals, including senior executives from the group.
Allegations and Investigative Focus
The ED’s probe centers on loan disbursals by Yes Bank between 2017 and 2019, which were allegedly diverted to shell companies and other group entities without proper due diligence. Investigators have reportedly uncovered back-dated credit approval memorandums, investments lacking credit analysis, and loans granted to financially weak entities with common addresses and directors—raising red flags of systemic irregularities.
Sources indicate that Yes Bank promoters received funds in their personal concerns shortly before loan approvals, suggesting a possible bribery nexus. The ED is examining whether these transactions were part of a broader scheme to siphon public funds.
Regulatory Inputs and Parallel Investigations
The money laundering case stems from two CBI FIRs and findings shared by SEBI, National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda. These reports allege a “well-planned scheme” to defraud banks, investors, and public institutions.
In a related development, State Bank of India (SBI) recently classified Reliance Communications (RCOM) and its promoters as “fraudulent,” and is preparing to lodge a complaint with the CBI. A separate ₹1,050 crore fraud involving Canara Bank and RCOM is also under ED scrutiny.
Corporate Response
In filings to stock exchanges, Reliance Power and Reliance Infrastructure acknowledged the ED’s actions but asserted that the raids have “absolutely no impact” on their operations, financial performance, or stakeholders. Both companies emphasized that Anil Ambani is not on their boards and that they have no business or financial linkages with RCOM or Reliance Home Finance Limited (RHFL)—the entities central to the investigation.
The companies further noted that the allegations pertain to transactions over a decade old, with RCOM undergoing insolvency proceedings since 2019 and RHFL resolved under a Supreme Court judgment.
Broader Financial Implications
The ED is also probing a suspected ₹10,000 crore loan fund diversion involving Reliance Infrastructure, and a ₹2,850 crore investment by Reliance Mutual Fund in Additional Tier-1 (AT-1) bonds, which may involve quid pro quo arrangements. These high-risk instruments have drawn regulatory attention due to their perpetual nature and elevated risk profile.
As the raids continue, the ED is expected to expand its investigation, potentially leading to further interrogations, asset seizures, and criminal proceedings. The case underscores growing regulatory scrutiny over corporate governance and financial transparency in India’s banking and investment sectors.
