ED raids over 35 sites linked to Anil Ambani in ₹3,000 crore laundering probe

The Enforcement Directorate (ED) on July 24 carried out sweeping raids across more than 35 premises in Mumbai tied to industrialist Anil Ambani and companies under the Reliance Anil Dhirubhai Ambani Group (RAAGA), in a deepening investigation into an alleged ₹3,000 crore money laundering operation involving Yes Bank and several shell companies.

The raids, targeting 50 companies and 25 individuals, follow two FIRs filed by the Central Bureau of Investigation (CBI) and inputs from a constellation of regulatory bodies including the National Housing Bank (NHB), Securities and Exchange Board of India (Sebi), National Financial Reporting Authority (NFRA), and Bank of Baroda.

Sources privy to the probe described the case as a “well-orchestrated scheme to siphon off public money by defrauding banks, shareholders, and public institutions.” Key red flags include loans sanctioned without due diligence, backdated approvals, and diversion of funds to interconnected entities with questionable financials.

One of the focal points of the ED’s investigation is Reliance Home Finance Ltd (RHFL), where Sebi has flagged suspicious spikes in corporate loan books — from ₹3,742.60 crore in 2017–18 to a staggering ₹8,670.80 crore the following year. Investigators say these loans were extended in violation of credit policy norms, and in some cases, disbursed even before approval.

The ED is also probing an alleged quid pro quo involving bribes to Yes Bank officials, linking the timing of massive loan approvals to financial transfers received by entities tied to the bank’s promoters. Investigators suspect a complex web of shell companies and promoter-linked firms was used to reroute funds under the guise of legitimate corporate activity.

“Documentation gaps, common addresses and directors, misrepresentation of financials, and the evergreening of loans point to a systemic breakdown of compliance,” said an official close to the case.

The latest action comes a year after Sebi barred Anil Ambani and 24 others from accessing the securities market for five years over fund diversion from RHFL. Sebi also imposed a ₹25 crore penalty on Ambani personally and a cumulative fine exceeding ₹625 crore on the group for orchestrating what it called a fraudulent scheme that eroded investor confidence in regulated financial systems.

In a parallel track, Ambani was also grilled by the ED in 2023 over alleged Foreign Exchange Management Act (FEMA) violations, after the Income Tax Department flagged undeclared offshore assets worth ₹800 crore.

The financial empire of one of India’s once-highest profile industrialists is now facing an intense reckoning, with investigators piecing together a trail that stretches from shadowy loans to offshore havens.