Mumbai, July 24 — Stocks related to Anil Ambani’s Reliance ADA Group (ADAG) are facing renewed pressure after the Enforcement Directorate (ED) launched raids at over 35 locations connected to his companies. The action is part of a probe into the alleged diversion of ₹3,000 crore worth of loans taken from Yes Bank between 2017 and 2019.
The ED’s investigation, which also covers 50 companies and 25 individuals, has raised serious concerns over possible loan fraud, shell companies, bribery, and misuse of public funds. While the legal process unfolds, the stock market has already responded, and not in a good way.
What Triggered the Raids?
According to the ED, the loans in question were disbursed with no proper credit checks, backdated approvals, and in some cases, even before formal sanction. Many of the borrowing companies had weak financials and shared addresses — classic signs of shell firms.
A big part of the investigation centers on Reliance Home Finance, where the loan book grew from ₹3,742 crore in FY18 to ₹8,670 crore in FY19 — a spike that raised red flags with regulators like SEBI, NHB, and NFRA.
How the Stock Market Reacted
Even though many ADAG companies are under stress or suspended from trading, the news of ED raids has spooked retail investors and caused short-term volatility in the group’s listed entities.
Stock Snapshot:
| Company | Status | Market Reaction |
|---|---|---|
| Reliance Power | Actively traded, penny stock | Mild drop, weaker volumes; retail panic visible. |
| Reliance Infrastructure | Volatile; speculative trading | Intraday swings of 2-3% after raid news broke. |
| Reliance Capital | Under insolvency; trading suspended | No movement, but concerns rise for resolution. |
| Reliance Home Finance | Suspended by SEBI | Now under direct ED scanner. |
Experts say even inactive or suspended stocks can face sentiment damage when tied to criminal probes.
Retail Investors Caught in the Middle
Anil Ambani’s stocks — especially Reliance Power and Reliance Infra — have huge retail shareholding bases. Many small investors continue holding them, hoping for recovery.
“We already lost value over the years. Now the ED raids feel like the final blow,” said Ajay Gupta, a retail investor from Lucknow who has held Reliance Power since 2010.
As per BSE data:
- Reliance Power: Over 33 lakh shareholders
- Reliance Infrastructure: Over 12 lakh shareholders
For these investors, the biggest concern now is whether legal troubles could lead to asset freezes, court cases, or even delisting in the long run.
Expert Take: Legal and Market Risk Growing
Market analysts believe this development is more than just a temporary dip.
“When financial crimes are suspected, it damages more than share price — it damages trust. And without trust, recovery becomes harder,” said Ramesh Tiwari, a Mumbai-based equity strategist.
He also pointed out that ongoing insolvency cases, like that of Reliance Capital, could be further delayed or derailed if new charges are filed.
What Happens Next?
The ED is likely to:
- Continue forensic analysis of financial records.
- Question key company executives and former Yes Bank officials.
- Possibly file fresh charges under money laundering and fraud laws.
There is currently no official response from Anil Ambani or Reliance ADA Group.
The bigger concern for investors is that more skeletons may tumble out as investigations deepen. With court cases, regulatory action, and insolvency proceedings already underway, the group’s revival looks increasingly difficult.
Bottom Line
This isn’t just another business story. It’s a serious financial investigation with real consequences — not only for Anil Ambani’s corporate legacy but also for lakhs of retail investors who are still holding onto hope.
Unless there’s a clear turnaround in legal and financial outcomes, ADAG companies may continue to stay in the red — both on the books and in the minds of investors.
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