ED Raids 50 Companies Linked to Anil Ambani in ₹3000 Cr Loan Fraud Case
The Enforcement Directorate (ED) conducted raids at over 35 locations associated with Anil Ambani’s Reliance Group, covering around 50 companies. These raids, carried out on July 24, are linked to a ₹3000 crore loan fraud case involving Yes Bank. Operations were conducted in both Mumbai and Delhi.
According to news agency PTI, the investigation is based on two FIRs filed by the Central Bureau of Investigation (CBI) and input from other regulatory agencies including SEBI, National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).
5 Key Questions About the Case
Q1: Why Did the ED Take Action Against Anil Ambani?
The case pertains to loans of nearly ₹3000 crore given to companies associated with Anil Ambani’s Reliance Group by Yes Bank between 2017 and 2019.
Preliminary ED investigations revealed that these loans were allegedly diverted to shell companies and other group entities. There are also suspicions that bribes may have been paid to senior Yes Bank officials.
Q2: What Else Has ED Found During the Investigation?
The ED claims it was a “well-planned scheme” in which banks, shareholders, investors, and public institutions were misled with false information to siphon off funds. Some key irregularities found include:
- Loans granted to weak or unverifiable companies
- Use of the same directors and addresses across many companies
- Absence of required documentation for loan disbursal
- Transfers of funds to shell companies
- “Loan evergreening” – using new loans to repay old ones
Q3: What is CBI’s Role in This Case?
ED’s action is based on two FIRs registered by the CBI highlighting massive financial irregularities. Information from SEBI, the National Housing Bank, Bank of Baroda, and NFRA further supported the investigation.
Q4: How Have Anil Ambani’s Companies Been Affected?
Following news of the raids, shares of two major companies—Reliance Infrastructure and Reliance Power—fell by up to 5%.
Q5: Are There Other Allegations Against Anil Ambani’s Companies?
Recently, the State Bank of India (SBI) declared Reliance Communications and Anil Ambani himself as “fraudulent entities.”
SBI alleges that Reliance Communications misused loans worth ₹31,580 crore. Out of this:
- ₹13,667 crore was used to repay other companies’ loans
- ₹12,692 crore was transferred to other Reliance Group companies
SBI is in the process of filing a complaint with the CBI. Additionally, insolvency proceedings against Anil Ambani are ongoing in the National Company Law Tribunal (NCLT) in Mumbai.
Background: Anil Ambani’s Business Split from Mukesh Ambani
Anil Ambani joined Reliance in 1983, while Mukesh Ambani joined in 1981. Their father Dhirubhai Ambani passed away in July 2002 without leaving a will. Mukesh became Chairman of the Reliance Group, and Anil became Managing Director.
In November 2004, disputes between the two brothers became public. Their mother, Kokilaben Ambani, was reportedly upset by the rift, which eventually led to a business split in June 2005. Final decisions regarding company ownership continued into 2006.
ICICI Bank’s then-Chairman V. K. Kamath also had to intervene in the split.
Post-division, Mukesh Ambani received the petrochemicals business including Reliance Industries, Reliance Petroleum, and Indian Petrochemicals Corporation Ltd.
Anil Ambani took over Reliance Communications (RCom), Reliance Capital, Reliance Energy, and Reliance Natural Resources.
Over time, Mukesh Ambani’s companies have flourished, while Anil Ambani’s businesses have faced continuous decline.
