NEW DELHI— The Enforcement Directorate (ED) on Thursday launched a sweeping crackdown on entities and individuals associated with Anil Ambani’s Reliance Group, conducting raids across more than 35 locations as part of a money laundering investigation tied to a ₹3,000 crore loan fraud at Yes Bank.
The searches targeted over 50 companies and more than 25 individuals connected to RAAGA Companies—firms linked to Ambani’s Reliance Group—under the provisions of the Prevention of Money Laundering Act (PMLA). The ED action follows FIRs filed by the Central Bureau of Investigation (CBI), which first flagged the irregularities.
According to reliable sources, agencies such as the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda also shared intelligence that aided the ED’s probe.
Preliminary findings by the ED point to a “well-planned and thought-out” scheme to siphon off public funds by defrauding banks, investors, shareholders, and other financial institutions. Investigators are also examining allegations of bribes paid to bank officials—including Yes Bank’s own promoters—suggesting a deeper nexus between the disbursal of loans and personal kickbacks.
The ED has identified approximately ₹3,000 crore in illegal loan diversions from Yes Bank between 2017 and 2019. In several cases, money was allegedly funneled to the concerns of Yes Bank’s promoters just before the loans were sanctioned, raising further suspicions of collusion.
Major lapses were uncovered in the bank’s loan approval process, including the backdating of Credit Approval Memorandums (CAMs), investment proposals made without proper due diligence, and clear violations of the bank’s internal credit policies.
The funds were allegedly routed through multiple group and shell companies in clear breach of loan conditions. Investigators also flagged suspicious patterns: loans disbursed without adequate documentation, companies with weak financials receiving large sums, common directors and addresses among borrower entities, and loans sanctioned and disbursed on the same day—or even before formal approvals were granted.
Sources say the ED is also examining findings shared by SEBI regarding Reliance Home Finance Ltd. (RHFL), a group company. The sudden spike in RHFL’s corporate loan book—from ₹3,742.60 crore in FY 2017–18 to ₹8,670.80 crore in FY 2018–19—has drawn scrutiny for potential financial manipulation.
The investigation is ongoing, and ED officials continue to uncover links between Yes Bank executives, Anil Ambani’s group firms, and a widening web of financial irregularities. (Source: IANS)
