The Enforcement Directorate (ED) on Thursday launched a sweeping search operation across 40 to 50 locations connected to businessman Anil Ambani and his group companies in connection with an alleged ₹3,000 crore loan fraud involving Yes Bank.
According to ED sources, the raids were conducted under the Prevention of Money Laundering Act and follow two FIRs registered by the Central Bureau of Investigation against companies in the Reliance Anil Ambani Group (RAAGA).
“ED is probing Yes Bank loan to Anil Ambani group companies,” posted RedBoxGlobal India on X. In a separate update, the platform also noted: “ED raids Anil Ambani in bank fraud case.”
The case is based on a series of complaints and intelligence inputs from multiple agencies, including SEBI, the National Housing Bank, the Bank of Baroda, and the National Financial Reporting Authority (NFRA), according to the reports.
Money laundering, bribes, and loan diversion
Sources claimed that the ED’s preliminary investigation has revealed what officials describe as “a well-planned and well-thought-out scheme to divert/siphon off public money by cheating banks, shareholders, investors and other public institutions.”
According to investigators, the fraud occurred during the period between 2017 and 2019, when Yes Bank sanctioned loans to RAAGA companies. Just before the disbursement of loans, ED has found, “the Yes Bank promoters received money in their concerns,” suggesting a suspected quid pro quo. “The offence of bribing bank officials, including the Promoter of Yes Bank Limited, is also under scanner,” the agency added.
The ED alleges that internal processes at Yes Bank were manipulated to push through the loans. This included back-dated Credit Approval Memorandums (CAMs), investments without due diligence or credit analysis, and violations of the bank’s credit policy, reports claimed. “Loans were given to entities with weak financials, without proper documentation, and were often disbursed on or even before the date of application,” said the source.
Further, the funds were allegedly diverted to group and shell companies. ED flagged multiple red flags, including common directors and addresses among borrower entities, evergreening of GPC loans, and onward lending on the same date.
SEBI findings and RHFL exposure
Separately, SEBI is also said to have shared its findings with ED concerning Reliance Home Finance Ltd (RHFL), a company under the Ambani group, according to reports. RHFL’s corporate loan book saw a dramatic jump, from ₹3,742.60 crore in FY 2017-18 to ₹8,670.80 crore in FY 2018-19, which is now under ED’s scanner. Officials cited “irregular and expedited approvals” and “process deviations” as areas of concern.
Over 35 premises, 50 companies, and 25 individuals were reportedly covered in Thursday’s operation under Section 17 of the Prevention of Money Laundering Act.
