Reliance Group Chairman questioned for 5 hours over alleged loan diversion, fund misuse, and shell companies; probe widens.
Reliance Group Chairman Anil Ambani has been summoned again by the Enforcement Directorate (ED) in connection with the ongoing probe into alleged ₹17,000 crore bank loan frauds. The industrialist was questioned for over five hours on Tuesday, sources said, as investigators examine allegations of fund diversion, shell companies, and misuse of public funds.
Ambani has been called for another round of questioning next week, amid reports that a substantial volume of incriminating documents was recovered during recent ED searches.
Second Round of Summons in ₹3,000 Cr Loan Diversion Probe
According to sources, the ED’s questions focused on the alleged diversion of ₹3,000 crore in loans disbursed by Yes Bank between 2017 and 2019. Officials believe funds were routed to shell companies, and have raised concerns over potential bribes to senior bank officials and possible financial links to political entities.
Mr Ambani reportedly denied knowledge of specific transactions and requested more time to verify the details. Notably, the questioning was videotaped and conducted without legal counsel present, as per legal provisions that allow such sessions to be admissible in court.
Massive Raids & Evidence Recovery
The ED’s renewed action follows three days of raids across 35 locations involving 50 companies associated with the Reliance Group. A “large number of incriminating documents” were seized, prompting fresh summons for the industrialist.
The agency has written to a dozen banks seeking records related to loan approvals and fund utilization by Reliance Housing Finance, Reliance Communications, and other group firms. Banks including SBI, Axis Bank, ICICI, and HDFC have been asked to explain the due diligence procedures, timeline of defaults, and subsequent recovery efforts.
₹14,000 Crore Fraud Case Linked to Reliance Communications
In addition to the Yes Bank loans, Anil Ambani is also under scrutiny in a separate ₹14,000 crore fraud case involving Reliance Communications (RCom). In June, SBI declared RCom’s loan account as fraudulent, citing fund diversion, irregular accounting, and book manipulation across group entities.
Sources say the ED is investigating whether these loans were used for their intended purpose or illegally routed to offshore accounts. Officials are also probing a possible quid pro quo arrangement where Yes Bank promoters allegedly received payments in privately held firms just before sanctioning loans.
Ongoing Investigations and Past Allegations
This is not the first time Mr Ambani’s companies have come under regulatory scrutiny. Market regulator SEBI previously ruled that Ambani and senior executives at Reliance Home Finance siphoned off ₹5,000 crore, disguising them as loans to linked entities. A ₹25 crore fine was imposed on Ambani personally, along with additional penalties for the company.
The ED now believes a “calculated scheme” was used to defraud banks, investors, shareholders, and public institutions by misusing loan funds.
What’s Next?
Anil Ambani has been asked to return next week for a second round of questioning. The ED is currently analyzing seized documents, reviewing bank responses, and assessing whether asset attachments or arrests are necessary. Further investigation could also lead to a CBI referral if criminal violations are confirmed.
With input from agencies
Also Read : Anil Ambani Questioned by ED in Loan Fraud Case, No Lawyer Allowed: Sources
