New Delhi: Industrialist Anil Ambani has sought a week’s time to submit the required documents and information to the Enforcement Directorate (ED) in connection with the ongoing investigation into an alleged ₹17,000-crore loan fraud.
Ambani’s request came after nearly nine hours of questioning by ED officials at their New Delhi headquarters, as part of a probe into suspected financial irregularities and potential violations under the Prevention of Money Laundering Act (PMLA).
According to ED officials, Ambani assured full cooperation and expressed his intent to provide all necessary documentation within the requested timeframe.
“Today, Anil Ambani’s statement was recorded. During the examination, several questions were posed regarding loan transactions. He has sought seven days to furnish the required documents and details,” officials told ANI.
The 66-year-old businessman appeared before ED investigators around 11 a.m. on August 5, following a summons issued the previous week. The questioning lasted until 8 p.m.
Ambani’s statement is considered key to the investigation, which also involves multiple entities and individuals linked to the case. This marks the first time the industrialist has been directly questioned by the ED.
This development comes nearly two weeks after the ED conducted widespread search operations at 35 locations, covering 50 companies and over 25 individuals linked to the Reliance Anil Dhirubhai Ambani Group (RAAGA). The raids, carried out on July 24, followed a money laundering probe initiated after a First Information Report was registered by the Central Bureau of Investigation (CBI).
The ED’s probe is reportedly based on inputs from multiple agencies and institutions, including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda.
Earlier, the agency had also issued a Look Out Circular (LOC) against Ambani in connection with the case.
Preliminary findings by the ED suggest a deliberate scheme to divert and siphon public funds by misleading banks, investors, and other stakeholders. Allegations also include bribery involving bank officials, particularly linked to Yes Bank.
According to investigators, approximately ₹3,000 crore in loans from Yes Bank, disbursed between 2017 and 2019, were allegedly diverted. The ED suspects that funds were routed to entities associated with the bank’s promoters just before loan sanctions were approved.
Officials noted serious irregularities in Yes Bank’s credit approval process for loans extended to RAAGA companies. These include backdated Credit Approval Memorandums, lack of due diligence, and breaches of internal credit policies. Furthermore, many loans were disbursed on the same day as application or even prior to formal approval.
Red flags identified by the ED include loans extended to financially weak entities, shared addresses and directors among borrowers, inadequate documentation, and improper fund usage — including onward lending and loan evergreening. Investigators also highlighted misrepresentation of financial data.
The Securities and Exchange Board of India (SEBI) is reported to have shared its findings with the ED in the case of Reliance Home Finance Limited (RHFL). The agency is examining a sharp rise in RHFL’s corporate loans from ₹3,742.60 crore in FY 2017–18 to ₹8,670.80 crore in FY 2018–19, amid allegations of irregular approvals and process violations.
Further, officials claim Reliance Communications Ltd defrauded lenders of over ₹14,000 crore. The State Bank of India (SBI) has classified the company and Ambani as “fraudulent” borrowers under RBI norms and is expected to file a complaint with the CBI. Canara Bank has reportedly suffered a loss of over ₹1,050 crore due to RCom.
Investigators are also probing undisclosed foreign assets and bank accounts allegedly linked to Ambani and his companies.
The ED claims that Reliance Mutual Fund invested ₹2,850 crore in YES Bank’s AT-1 bonds under a suspected quid pro quo arrangement. These investments, made using public funds, were written off, leading to significant losses. The CBI is also investigating this matter.
Additionally, based on information from SEBI, the ED found that Reliance Infrastructure diverted large sums, disguised as inter-corporate deposits (ICDs), to RAAGA group firms via an undisclosed related party — referred to as “C Company.” Officials allege that this company was intentionally not disclosed to shareholders or audit committees to bypass legal safeguards.
Officials further stated that Reliance Infrastructure accepted a ₹5,480 crore haircut in the settlement of dues, of which only ₹4 crore was received in cash. The remainder, settled through asset transfers and economic rights in non-operational discoms, is unlikely to be recovered. The total suspected diversion in this case is pegged at over ₹10,000 crore.
Responding to these allegations, Reliance Infrastructure issued a clarification earlier this year, referring to the ₹10,000 crore matter as over a decade old. The company claimed its actual exposure stood at ₹6,500 crore, fully disclosed in its financial statements.
“Reliance Infrastructure had publicly disclosed this matter on February 9, 2025,” the company said in a statement, adding that recovery was being pursued through mediation, with a settlement awarded by a retired Supreme Court judge and filed before the Bombay High Court.
The statement also noted that Anil D. Ambani has not served on the board of Reliance Infrastructure since March 2022.
