In a significant development as part of an ongoing investigation into alleged loan fraud and money laundering, the Enforcement Directorate (ED) has conducted large-scale raids at over 35 locations across India. These searches are linked to various companies under the Anil Ambani-led Reliance Anil Dhirubhai Ambani Group (ADAG).
According to a report by Hindustan Times, the searches were carried out under the Prevention of Money Laundering Act (PMLA). Quoting people familiar with the matter, the report states that the ED is targeting 50 companies and over 25 individuals associated with ADAG entities in connection with the probe.
“These searches span multiple states and involve a range of business interests linked to Reliance ADAG. The action is part of a money laundering investigation launched following two FIRs filed by the Central Bureau of Investigation (CBI) in September 2022,” an ED official was quoted as saying.
The ED believes that the case revolves around a “well-planned and thought-after scheme” involving the alleged diversion and siphoning of public funds. Preliminary findings suggest cheating of banks, shareholders, investors, and public institutions on a massive scale.
An ED officer added, “The bribe-for-loan scandal involving Yes Bank officials, including founder Rana Kapoor, is also being probed. We have found that just before the loans were sanctioned, promoters of Yes Bank received money in their linked entities. The ED is actively investigating this suspected nexus between bribes and the loan approvals.”
Furthermore, investigators have uncovered what they describe as “gross violations” in the internal processes of Yes Bank at the time the loans were approved. According to sources, Credit Approval Memorandums (CAMs) were allegedly backdated, and investments were made without proper credit analysis or due diligence.
“The systemic lapses in Yes Bank’s loan approval system are glaring. These deals appear to have been pushed through by circumventing credit policy protocols,” a second official told Hindustan Times.
In response to media reports, Reliance Infrastructure—another key company under the ADAG umbrella—issued a statement distancing itself from the developments.
“The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old,” the statement read.
RCOM and RHFL have both faced financial stress in the past decade, including insolvency proceedings. However, the ED’s current investigation is focused on the period when loans were actively disbursed and possibly misused, as per officials.
The ED’s multi-city operation highlights a renewed push by central agencies to pursue high-value financial crimes involving top corporate entities. The raids come at a time when India’s financial sector watchdogs are under increased pressure to crack down on non-performing assets and restore public trust in lending institutions.
The investigation is ongoing, and further details are expected in the coming days as evidence is analyzed and individuals summoned for questioning.
📰 Source:
Hindustan Times Report (Refer to HT for original report and statements)
