A Look Out Circular (LoC) has been issued against Anil Ambani, chairman of the Anil Dhirubhai Ambani Group (ADAG), on the Enforcement Directorate’s (ED) request, as the agency ramps up investigations into alleged bank loan fraud running into thousands of crores.
The ADAG chairman has also been summoned to appear at the ED headquarters in Delhi on August 5. His statement will be recorded under the Prevention of Money Laundering Act (PMLA). Several executives from his group companies have also been summoned over the coming days.
The ED’s action follows extensive searches last week at 35 premises linked to 50 companies and 25 individuals, including Reliance Group executives. These operations, conducted from July 24 over three days, stem from allegations of financial irregularities and diversion of over ₹17,000 crore by multiple ADAG firms, including Reliance Infrastructure (R Infra).
Citing a SEBI report, the ED alleges that R Infra routed funds as inter-corporate deposits (ICDs) via a company named CLE to other Reliance Group entities. R Infra reportedly failed to disclose CLE as a related party, bypassing mandatory approvals.
A Reliance Group spokesperson responded, saying the issue relates to a decade-old matter involving ₹6,500 crore, not ₹10,000 crore as alleged. R Infra disclosed the matter publicly in February 2025 and has since reached a settlement through court-mandated mediation to recover the entire exposure. The company also noted that Ambani has not been on R Infra’s board since March 2022.
The ED is separately probing a ₹3,000 crore loan given by Yes Bank to ADAG companies between 2017 and 2019. Investigators believe Yes Bank promoters received funds in their personal concerns just before sanctioning the loans, suggesting a possible quid pro quo.
Further, the agency is scrutinising Yes Bank’s credit processes, citing violations such as back-dated approval memos, lack of due diligence, and lending to financially weak entities with overlapping directorships and addresses.
The money laundering case is based on FIRs filed by the CBI and inputs from SEBI, the National Housing Bank, NFRA, and Bank of Baroda. The ED suspects a deliberate scheme to siphon public money and mislead financial institutions.
The Union government recently disclosed in the Parliament that the State Bank of India has classified RCOM and Ambani as ‘fraud’ accounts and is preparing to lodge a CBI complaint. A ₹1,050 crore loan fraud involving RCOM and Canara Bank is also under ED scrutiny, along with allegations related to undisclosed offshore accounts and a ₹2,850 crore investment in AT-1 bonds by Reliance Mutual Fund.
(With inputs from PTI)
