ED Summons Follows Raids, Alleged Loan Diversions, and Ongoing Probe Into Reliance Group Companies
Anil Ambani Under ED Scanner in Massive Loan Fraud Case
Reliance Group Chairman Anil Ambani is scheduled to appear before the Enforcement Directorate (ED) today, August 5, for questioning in a high-profile ₹17,000 crore bank loan fraud and money laundering case.
The ED had issued summons to Mr. Ambani on August 1, following extensive searches at locations associated with companies linked to him.
Key Developments in the Case So Far
- ED Raids: On July 24, the agency conducted raids in Delhi and Mumbai under the Prevention of Money Laundering Act (PMLA).
- Scope of Searches: Raids targeted 50 companies and 25 individuals, including executives of Anil Ambani-led group companies.
- Seizures: Authorities recovered documents, digital devices, and other evidence during the search operation.
Loan Diversion and Shell Companies Under Probe
Sources revealed that the case revolves around:
- Illegal diversion of ₹3,000 crore from Yes Bank between 2017 and 2019.
- Fraudulent activities linked to Reliance Communications, with alleged misappropriation exceeding ₹14,000 crore.
- Use of shell companies, common directors, and evergreening of loans to mask irregularities.
- Loan approvals granted without proper due diligence or documentation.
Banks Under ED Radar
The ED has reached out to 12–13 public and private banks to gather loan-related data. These include:
- State Bank of India (SBI)
- ICICI Bank
- Axis Bank
- HDFC Bank
- UCO Bank
- Punjab and Sind Bank
Authorities are investigating the due diligence practices followed by these banks before loan sanctioning.
Arrest and Lookout Circular Issued
- First Arrest Made: On August 1, the ED arrested Partha Sarathi Biswal, Managing Director of Biswal Tradelink Pvt Ltd, for allegedly submitting fake guarantees worth ₹68.2 crore on behalf of Reliance Power.
- Lookout Circular: A lookout notice has been issued against Anil Ambani, restricting any attempt to leave the country during the probe.
CBI FIRs and Ongoing Investigations
The investigation was initiated after the Central Bureau of Investigation (CBI) filed two FIRs in the matter. Red flags highlighted by the agencies include:
- Loans issued to companies with questionable financial backgrounds
- Shared addresses and directors across group companies
- Loans used for repaying earlier debts, a practice known as loan evergreening
Reliance Group’s Official Response
In a statement to the stock exchanges on July 26, Reliance Power and Reliance Infrastructure said the ED’s actions had:
“Absolutely no impact on our business operations, financial performance, shareholders, employees, or other stakeholders.”
Background: SBI’s Earlier Action
- In November 2020, SBI declared Reliance Communications and Anil Ambani as fraud accounts.
- A complaint was filed with the CBI on January 5, 2021, but was later withdrawn following a Delhi High Court order.
Conclusion
The investigation into Anil Ambani and the Reliance Group companies marks one of the largest alleged financial frauds involving a high-profile business figure in India. With ongoing scrutiny from the ED and other agencies, the case could have far-reaching implications across India’s financial and corporate sectors.
Also Read : Anil Ambani Loan Fraud Case: First Arrest Made in ₹3,000-Crore Money Laundering Probe
