Sources say the entire questioning session is being recorded on camera as ED probes a high-profile loan fraud involving Reliance Group companies.
Anil Ambani Appears Before ED in Delhi
Reliance Group chairman Anil Ambani has been questioned by the Enforcement Directorate (ED) in New Delhi as part of an ongoing money laundering probe linked to an alleged loan fraud case, according to official sources.
The investigation concerns suspected irregularities in bank loans extended to Reliance Group companies, which are under the scanner for suspected diversion and misuse of funds.
No Lawyer Allowed, Entire Session on Record
- According to sources, Mr. Ambani is not allowed legal representation during the questioning.
- The entire session is being recorded on video, in line with procedures under the Prevention of Money Laundering Act (PMLA).
- Statements made under PMLA are legally admissible in court.
Background of the Case
The ED issued summons to Mr. Ambani on August 1, just days after conducting searches at multiple companies linked to him. These raids — conducted in Delhi and Mumbai — were part of a broader probe into alleged financial irregularities involving loan diversion, shell companies, and fraudulent guarantees.
Allegations: Loan Diversion and Shell Entities
Initial findings reveal:
- Alleged diversion of ₹3,000 crore from Yes Bank between 2017 and 2019
- An additional suspected ₹14,000 crore loan fraud linked to Reliance Communications
- Use of shell entities, common directors, and fabricated documents in loan applications
- Instances of “evergreening”—fresh loans used to repay previous ones
Banks Under ED’s Lens
The agency has written to 12–13 public and private banks, requesting details about the loans issued to:
- Reliance Communications
- Reliance Housing Finance
- Reliance Commercial Finance
Banks involved include:
SBI, ICICI Bank, HDFC Bank, Axis Bank, UCO Bank, and Punjab and Sind Bank.
Arrests & Lookout Circular
- The ED arrested Partha Sarathi Biswal, MD of Biswal Tradelink Pvt Ltd, on August 1 for allegedly submitting fake guarantees worth ₹68.2 crore on behalf of Reliance Power.
- A lookout circular has been issued against Mr. Ambani, restricting his movement during the investigation.
ED Raids and CBI FIRs
- The ED’s action is based on two FIRs registered by the CBI.
- Raids targeted 50 companies and 25 individuals, with over 25 people questioned.
- The focus is on establishing the link between loan approvals and alleged bribes received by Yes Bank promoters before sanctioning loans to Ambani-linked entities
Reliance Group’s Response
In a regulatory filing on July 26, Reliance Power and Reliance Infrastructure stated:
“The ED raids have absolutely no impact on our business operations, financial performance, employees, or stakeholders.”
Past Allegations
- In November 2020, SBI had classified Reliance Communications and Mr. Ambani’s account as fraudulent.
- A complaint was filed with the CBI in January 2021.
- The Delhi High Court later issued a status quo order, pausing further action.
Also Read : Anil Ambani to Appear Before ED Today in Bank Loan Fraud and Money Laundering Case
