The Enforcement Directorate (ED) conducted extensive raids across 35 premises and over 50 companies linked to industrialist Anil Ambani’s Reliance Group, now known as RAAGA (Reliance Anil Ambani Group of Associates). The sweeping operation, which unfolded in Mumbai and extended to multiple locations, is part of a wider investigation into the massive Rs 3,000 crore Yes Bank loan fraud case.
Sources in the ED confirmed that the searches are being carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), following two First Information Reports (FIRs) registered by the Central Bureau of Investigation (CBI). The operation is backed by incriminating inputs shared by multiple financial oversight bodies including SEBI, the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda.
Enforcement Directorate conducts raid on properties linked to #AnilAmbani in connection with alleged offence of money laundering. pic.twitter.com/mCSRTMDKho
— DD News (@DDNewslive) July 24, 2025
The ED’s preliminary findings reveal a complex and deliberate scheme allegedly designed to divert public funds through shell companies, sister concerns, and questionable corporate transactions. Investigators suspect gross violations in Yes Bank’s internal loan approval mechanisms, including backdated approvals, evergreening of accounts, loans granted without due diligence, and disbursal of funds even before official sanctions.
Critically, some of the loans were extended to entities with poor financial health, common directors, and even overlapping addresses — all red flags for money laundering, the ED says. Many of these firms allegedly acted as conduits to reroute money to Anil Ambani-linked entities.
A source in the investigative agency remarked, “It appears to be a systematic and premeditated effort to siphon off public money by cheating banks, shareholders, investors, and regulators.”
One key entity under the scanner is Reliance Home Finance Ltd (RHFL). According to data shared by SEBI, RHFL’s corporate loan book nearly doubled from Rs 3,742.60 crore in FY 2017–18 to Rs 8,670.80 crore in FY 2018–19 an alarming growth that raised serious concerns about possible irregularities, policy violations, and conflict of interest in approvals.
Investigators are now probing whether this sudden surge in corporate loans was a deliberate strategy to facilitate fund diversion in tandem with the Yes Bank loans.
The ED is also probing the alleged bribery of Yes Bank officials, including promoters of the now crisis-hit private lender. According to sources, some suspicious transactions suggest that bribe money was routed to bank officials just days before loans were sanctioned, indicating quid pro quo arrangements.
The modus operandi appears to include disbursing loans on the very day of application or even earlier often without any meaningful financial scrutiny. Officials have uncovered cases where credit approval memos were backdated, and loans were extended in violation of internal credit policy norms.
In a parallel move last year, SEBI banned Anil Ambani and 24 other individuals, including former RHFL executives, from accessing the capital markets for five years. The market regulator alleged that Anil Ambani masterminded a fraudulent scheme that severely compromised investor trust and violated core principles of governance in regulated financial institutions.
SEBI had imposed a fine of Rs 25 crore on Anil Ambani, while the total penalties levied on all 25 entities crossed Rs 625 crore. It is also worth noting that RHFL has already faced judicial scrutiny, with some allegations still pending before the Securities Appellate Tribunal.
In a bid to limit the damage, Reliance Power and Reliance Infrastructure issued statements distancing themselves from the ED’s actions. The companies said that the investigations are linked to the now-defunct Reliance Communications (RCOM) and RHFL entities that are no longer operational or have undergone insolvency resolution.
They added that Anil Ambani is no longer a board member of these companies and insisted that the raids have no impact on current business operations, stakeholders, or financial performance.
However, given the scale and severity of the alleged fraud, the statements did little to quell market concerns. Investors and stakeholders are closely watching how this high-profile case unfolds, especially given Anil Ambani’s previous interrogation in 2023 for alleged FEMA violations and Rs 800 crore in offshore assets.
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