Anil Ambani summoned by ED in ₹3,000 crore bank fraud probe linked to Yes Bank loans

The Enforcement Directorate (ED) has summoned industrialist Anil Ambani to appear before investigators on August 5 in connection with a ₹3,000 crore bank loan fraud case under the Prevention of Money Laundering Act (PMLA). The move comes just days after the agency wrapped up a series of extensive raids at over 35 locations in Mumbai linked to Ambani and his group companies.

The probe centres around allegations that loans disbursed by Yes Bank to firms under the Reliance Anil Dhirubhai Ambani Group (RADAG) between 2017 and 2019 were illegally diverted, possibly as part of a broader quid pro quo involving bribes paid to bank officials — including Yes Bank’s own promoters.

According to officials, ED teams carried out coordinated searches across Mumbai from July 24 to 27, targeting premises associated with Reliance Communications (RCOM), Reliance Home Finance Limited (RHFL), and other related entities. Following the raids, Ambani has now been summoned to the agency’s Delhi headquarters for questioning.

In a statement issued by Reliance Power, a spokesperson said the group and its executives have “fully cooperated” with the ED and would continue to do so. The company maintained that the investigation appears to concern transactions dating back more than a decade involving RCOM and RHFL — both of which are now under separate resolution processes or fully settled.

“Reliance Power is an independent listed company with no business or financial linkage to RCOM or RHFL. Mr. Anil D. Ambani is not on the Board of Reliance Power,” the statement said, adding that the ED’s actions would have no impact on the company’s governance or operations.

Sources close to the investigation claim that the ED has uncovered serious irregularities in the loan sanction process at Yes Bank. These include the use of backdated credit approval documents and investments made without any due diligence — clear violations of the bank’s internal policies.

Adding another layer to the probe, the ED has alleged that Reliance Mutual Fund had invested nearly ₹2,850 crore in Yes Bank’s Additional Tier-1 (AT1) bonds as part of a suspected quid pro quo arrangement. The bonds were eventually written down to zero, raising suspicions that the funds — essentially public money from mutual fund investors — were siphoned off.

The money laundering investigation stems from at least two First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI), as well as reports provided by the National Housing Bank, the Securities and Exchange Board of India (SEBI), the National Financial Reporting Authority (NFRA), and Bank of Baroda.

In 2023, SEBI had barred Anil Ambani and 24 other individuals — including former top executives of RHFL — from the securities market for five years, citing fund diversion and corporate governance failures. The regulator also imposed a cumulative penalty exceeding ₹625 crore, including a ₹25 crore fine on Ambani himself for allegedly masterminding the financial misconduct.

The multi-agency investigation marks a significant development in India’s broader crackdown on corporate fraud and financial sector malpractice — with one of the country’s most prominent business names now in the spotlight.