Enforcement Directorate Issues Lookout Notice for Anil Ambani in Loan Fraud Probe
The Enforcement Directorate (ED) has issued a Look Out Circular (LOC) against industrialist Anil Ambani in connection with a money laundering probe into an alleged ₹17,000-crore loan fraud. Ambani has been summoned to appear on August 5. The investigation stems from an FIR filed by Delhi's Economic Offences Wing and recent ED raids on 35 locations linked to the Reliance Group, which reportedly uncovered a fake bank guarantee scheme designed to defraud financial institutions.
Unpacked:
A Look Out Circular (LOC) is a directive to immigration authorities to prevent an individual from leaving the country, often used in cases where authorities fear the person may evade investigation or prosecution. It has been issued against Anil Ambani to ensure he remains available for questioning in the ongoing money laundering and loan fraud probe.
The main allegations involve the diversion of loans worth over ₹17,000 crore, taken by multiple Reliance Group companies, through fake bank guarantees and fraudulent schemes to deceive financial institutions. Authorities suspect that funds were misused and financial documents were falsified to facilitate the fraud.
Anil Ambani and his companies have faced several financial and legal challenges, including insolvency proceedings, debt defaults, and probes into alleged financial irregularities. The current case stems from an FIR by Delhi’s Economic Offences Wing and follows recent ED raids on multiple Reliance Group premises.
If the allegations are proven, Anil Ambani could face criminal charges under the Prevention of Money Laundering Act (PMLA), significant fines, asset confiscation, and possible imprisonment. The Reliance Group may also face regulatory actions and further financial scrutiny.