Raids Conducted at 35 Locations; Over 50 Firms, 25 People Under Investigation
New Delhi, July 24 – The Enforcement Directorate (ED) has launched a major investigation into companies linked to businessman Anil Ambani, focusing on allegations of a ₹3,000 crore loan diversion from Yes Bank. As part of the probe, ED officers conducted searches at more than 35 locations across India, including offices and residences connected to Ambani’s Reliance ADA Group (ADAG) and its subsidiaries.
The case revolves around suspicions that large loans sanctioned by Yes Bank between 2017 and 2019 were not used for genuine business purposes, but were instead illegally routed through shell companies, misused, or used to repay previous loans — a serious financial malpractice.
What Is the Case About?
Between 2017 and 2019, several companies under the Reliance ADAG umbrella reportedly took large loans from Yes Bank. However, ED officials now believe that instead of using this money for business growth or development, the funds were redirected or misused through shady methods.
Officials say some of the loans were:
- Given without proper credit checks
- Disbursed before formal approval
- Supported by backdated or missing documents
- Linked to shell firms with no real operations
Moreover, many of these firms shared common directors and office addresses, suggesting that they were set up only to move money around, not run legitimate businesses.
Allegations of Bribery and Misuse
The ED suspects that top executives of Yes Bank may have received financial benefits or indirect payments in return for approving such large loans. These kinds of transactions, if proven, would amount to bribery and breach of trust involving public money.
An ED official, speaking on condition of anonymity, said,
“We have found several financial links between Yes Bank promoters and the group entities that borrowed money. This points to a larger conspiracy to defraud the banking system.”
Spotlight on Reliance Home Finance
One of the biggest concerns is the role of Reliance Home Finance Limited (RHFL) — a company under the ADAG group. In 2018, RHFL had disbursed loans worth ₹3,742 crore, but by 2019, this number had skyrocketed to ₹8,670 crore.
Such rapid growth raised alarm bells among regulatory bodies like:
- SEBI (Securities and Exchange Board of India)
- National Housing Bank (NHB)
- National Financial Reporting Authority (NFRA)
- Bank of Baroda
These agencies pointed out irregular loan approvals, poor monitoring of funds, and possible links to shell firms. Many of the loan recipients had weak financials, yet were still granted huge amounts without proper scrutiny.
ED’s Nationwide Action
In a coordinated move, the ED raided:
- Offices of multiple Reliance ADAG companies
- Residences of senior employees and directors
- Locations in Mumbai, Delhi, Hyderabad, and Pune
More than 50 companies and 25 individuals are being investigated. According to reports, several digital records and physical files have been seized, and some employees are being questioned about their roles in loan processing and fund transfers.
Connection to Yes Bank Crisis
This case is closely connected to the wider Yes Bank crisis, where the bank’s former promoter Rana Kapoor was arrested in 2020 for alleged financial fraud. Kapoor is accused of giving out risky loans in return for personal gains. The ED believes that some of these risky loans went to ADAG companies, forming part of the current investigation.
No Official Statement from Anil Ambani Yet
As of now, Anil Ambani or Reliance ADA Group has not released any statement responding to the raids or the ongoing investigation. The group, once a major player in telecom, finance, and infrastructure, has faced multiple financial troubles and debt defaults over the past decade.
What Happens Next?
The ED has said that the investigation is still ongoing, and further action will be taken based on the evidence collected. If wrongdoing is confirmed, legal action could follow, including arrests, asset seizures, or court cases.
Experts believe this case may lead to stricter controls on bank lending, better checks on NBFCs (non-banking finance companies), and tighter rules on shell firms.
Why This Matters
This is one of the biggest actions taken by the ED against a top Indian business group in recent years. It shows the government’s increasing focus on tackling white-collar financial crime, especially when public money and investor trust are at stake.
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