ED summons Reliance Group chairman in probe over alleged diversion of loans disbursed by Yes Bank between 2017–2019
🔍 Major Developments
The Enforcement Directorate (ED) has reportedly issued a Lookout Circular (LoC) against Anil Ambani, chairman of the Reliance Group, in connection with an ongoing investigation into a ₹3,000 crore loan fraud case. The circular is intended to prevent the industrialist from leaving the country while the investigation is active.
The development coincides with the ED summoning Ambani for questioning. He has been asked to appear before the agency on August 5, 2025.
🏢 ED’s Investigation: What’s Alleged
The ED is probing allegations of financial misconduct involving loans given by Yes Bank to companies associated with Anil Ambani’s Reliance Group during the period of 2017 to 2019.
Key allegations include:
- Diversion of loan funds to shell companies and affiliate entities.
- Absence of due diligence, with several credit approval memos reportedly backdated.
- Loans disbursed to financially weak firms with common addresses and directorships.
- Possible “quid pro quo” transactions — significant payments made to Yes Bank promoters around the same time the loans were approved.
Investigations also focus on loans given to Reliance Commercial Finance Ltd and Reliance Home Finance Ltd, both under regulatory scrutiny.
🚨 Key Findings So Far
- The ED recently conducted searches at over 35 premises linked to more than 50 firms and individuals allegedly tied to the case.
- Evidence reportedly points to the misuse of corporate structures to evergreen loans, inflate books, and evade detection.
- Financial records under review indicate loans worth ₹3,000 crore were granted without appropriate vetting.
📉 Corporate & Market Impact
Following news of the ED’s action:
- Shares of Reliance Infrastructure and Reliance Power fell by nearly 5%, indicating investor concerns.
- Both companies issued public clarifications, denying any wrongdoing and affirming that their operations remain unaffected.
🧾 Regulatory Background
This investigation is part of a wider crackdown involving multiple regulatory bodies. The Securities and Exchange Board of India (SEBI), National Housing Bank, and Bank of Baroda have previously flagged irregularities in lending practices tied to Reliance entities.
The ED’s probe also draws from two prior CBI FIRs filed in 2022, which alleged forgery and misuse of public funds by associated companies.
✈️ Lookout Circular: What It Means
A Lookout Circular (LoC) is a preventive measure used to stop individuals from fleeing the country during legal proceedings or investigations. It is shared with immigration checkpoints at airports and seaports, enabling officials to detain the subject if an attempt is made to leave the country.
📅 What’s Next
Anil Ambani is required to appear before the ED on Tuesday, August 5, 2025. Until then, the Lookout Circular remains active.
This case continues to unfold and could have broader implications for regulatory oversight of corporate lending and financial conduct in India.
Also Read : Anil Ambani Under ED Scanner: 35 Locations Raided in Massive Money Laundering Probe
