Enforcement Directorate Summons Anil Ambani in Loan Fraud Probe
The Enforcement Directorate (ED) has summoned Reliance Group Chairman Anil Ambani for questioning on August 5 in Delhi. The summons is part of a money laundering investigation into an alleged loan fraud scheme exceeding ₹10,000 crore. The probe stems from CBI FIRs and focuses on the diversion of around ₹3,000 crore in loans from Yes Bank between 2017-2019. The action follows extensive ED raids last week on over 50 companies linked to Ambani's business group across Mumbai and Delhi.
Unpacked:
The ED is investigating allegations that loans worth around ₹3,000 crore, granted by Yes Bank to companies in the Reliance Group between 2017 and 2019, were improperly diverted to shell companies. They are also probing possible bribery, unsecured loans, and violations of Yes Bank’s credit approval process, including backdated documents and lack of due diligence.
The ED has conducted raids at over 35 locations in Mumbai, covering about 50 companies and 25 individuals linked to Anil Ambani’s business group. They have seized documents and evidence, and summoned Anil Ambani for questioning at the ED headquarters in Delhi on August 5.
Multiple agencies, including the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, have provided relevant information to the ED. SEBI has also flagged undisclosed related party transactions, and these agencies are collaborating with the ED to examine regulatory and financial irregularities.
If the allegations are proven, Anil Ambani and involved entities could face criminal charges under the Prevention of Money Laundering Act (PMLA), significant financial penalties, possible imprisonment, and restrictions on business operations. Regulatory actions could also lead to stricter scrutiny or bans from financial markets.