ED Summons Anil Ambani On Alleged Multi-Crore Loan Fraud Case

The Enforcement Directorate (ED) has summoned businessman Anil Ambani in connection with a money laundering investigation linked to alleged loan fraud worth several thousand crores. Officials said Ambani must appear before the agency on August 5. The ED will likely question him about loans extended to Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Ltd (RCFL), and the suspected diversion of those funds. People familiar with the matter said the investigation forms part of a wider probe into financial irregularities involving the Reliance Anil Dhirubhai Ambani Group and multiple high-value corporate loans.

ED Investigates Reliance Group Executives, Conducts Raids

The ED recently raided premises linked to 50 companies and 25 individuals, including senior executives of the Reliance Anil Dhirubhai Ambani Group. The agency is probing two specific loans issued by Yes Bank to RHFL and RCFL. In both cases, the Central Bureau of Investigation (CBI) has already named former Yes Bank Chairman Rana Kapoor as an accused. “Preliminary investigations have revealed a well-planned and thought-after scheme to divert or siphon off public money by cheating banks, shareholders, investors, and other public institutions,” said an ED officer.

ED Uncovers Loan Policy Violations in Yes Bank Deals

The Enforcement Directorate uncovered major violations in Yes Bank’s loan approvals to Reliance Anil Ambani Group companies. “Credit approval memorandums (CAMs) were back-dated, investments were proposed without any due diligence or credit analysis in violation of the bank’s credit policy,” an ED officer said. “In violation of the terms, these loans were diverted to many group companies and shell companies.” Investigators are examining how credit policies were bypassed and whether any internal collusion facilitated the alleged misuse of public money through financial engineering.

Corporate Loan Surge Under Scrutiny, RCOM Loan Also Probed

A second ED official said the corporate loan book of RHFL grew rapidly, from ₹3,742.60 crore in FY 2017–18 to ₹8,670.80 crore in FY 2018–19. The agency is now reviewing whether this increase was linked to the suspected diversion of funds. Separately, the ED is also investigating a loan fraud of over ₹14,000 crore allegedly committed by Reliance Communications Ltd (RCOM). The probe includes examining fund flows, related-party transactions, and how multiple entities linked to the Reliance Group used bank loans during that period.

Reliance Group Responds, Denies Direct Ties with RCOM and RHFL

A Reliance Group spokesperson, requesting anonymity, said, “Anil Ambani resigned from the board of RCOM in 2019. Presently, Anil Ambani is not on the board of any Reliance Group companies.” The official clarified that RHFL and RCOM are not part of the present-day Reliance Group, which only includes two listed entities—Reliance Infrastructure Ltd and Reliance Power Ltd. The statement aimed to distance the current group structure from the companies under investigation, highlighting Anil Ambani’s limited present involvement.

Reliance Alleges Unfair Treatment by SBI, Cites CIRP Status

Responding further, the Reliance Group official said, “Reliance Communications Limited (RCOM) has been under the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, for over six years. State Bank of India (SBI) did not grant Anil D Ambani an opportunity for a personal hearing before its committee made its decision in the matter. Furthermore, SBI dropped similar allegations against other notices on identical grounds. However, Mr Ambani was not afforded the same treatment.” The group claims this represents unequal treatment under the same proceedings.

ED Raids Conclude; Reliance Says Operations Unaffected

The ED concluded its three-day raids on various Reliance Group locations on July 27. Following the searches, Reliance Infrastructure and Reliance Power stated in their stock exchange filings that the ED’s action had no effect on ongoing business operations. Both companies assured investors that their functions continued without disruption. Meanwhile, HT reached out to Reliance for an official comment on the ED summons issued to Anil Ambani. No formal response had been shared by the group at the time of publishing this report.

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