The Enforcement Directorate (ED) conducted raids at multiple locations linked to Reliance Group chairman Anil Ambani in Delhi and Mumbai. The operation follows two FIRs filed by the Central Bureau of Investigation (CBI), which alleged large-scale financial irregularities.
According to sources, ED teams examined documents and digital records at over 35 locations, including offices and premises tied to more than 50 companies. Officials questioned over 25 individuals in connection with the case. The ED stated that its initial findings reveal a planned scheme to divert public funds by cheating banks, shareholders, and public institutions.
ED Flags Alleged Fraud Through Loans to RAAGA Companies
The ED investigation points to major financial wrongdoing involving RAAGA companies—entities under the Reliance Anil Dhirubhai Ambani Group. Between 2017 and 2019, Yes Bank reportedly disbursed around Rs 3,000 crore in loans to these companies.
The probe has detected an alleged quid pro quo deal where Yes Bank promoters received payments in their private firms shortly before approving loans. The ED has flagged loans given to companies with poor financials, use of same directors and addresses, routing of funds to shell firms, missing documents, and “loan evergreening,” where fresh loans replaced old ones to hide defaults.
Sources informed that senior Yes Bank officials, including former promoters, may have received bribes to approve large unsecured loans to RAAGA companies. The ED suspects that these individuals benefitted personally through payments or other gains while clearing high-value financial deals without proper checks.
These alleged actions enabled the flow of public funds into companies lacking financial strength. The ED is now reviewing records to determine the exact roles of specific bank officials and company executives in approving loans and facilitating fund diversion.
Regulators Share Findings With ED on Reliance Home Finance
Several financial and regulatory bodies, including SEBI, NHB, NFRA, and Bank of Baroda, have shared their findings with the ED. SEBI submitted a report highlighting serious irregularities in Reliance Home Finance Limited (RHFL), a Reliance Group company. According to the report, RHFL’s corporate loan book expanded significantly from Rs 3,742 crore in FY 2017–18 to Rs 8,670 crore in FY 2018–19. The report also pointed out weak internal controls, unsecured loans, and high-risk lending. These findings are now part of the ED’s ongoing investigation into financial misconduct and money laundering allegations involving group companies and financial institutions.
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