Anil Ambani Questioned for 10 Hours in Alleged Bank Loan Fraud Case
The Enforcement Directorate (ED) questioned Reliance Group Chairman Anil Ambani for approximately 10 hours in connection with a money laundering case linked to alleged bank loan frauds worth over ₹17,000 crore. The probe stems from allegations of fund diversion from loans granted by Yes Bank and other financial irregularities. The ED, which recently conducted searches at 35 locations, is investigating a suspected nexus of bribes and loans, and has issued a Look Out Circular against Ambani.
Unpacked:
Anil Ambani is accused of moving ₹10,000 to ₹17,000 crore through a lesser-known company, CLE Pvt Ltd, with funds disguised as inter-corporate deposits and ultimately written off after default. These transfers were allegedly hidden from auditors and shareholders to shift assets off Reliance Infrastructure’s books between 2013 and 2023.
Ambani's companies deny wrongdoing, claim lower liabilities, and assert that he has not held an active role since 2022. They argue that most accusations relate to old cases, bankrupt firms, or external fraudsters, and that Ambani merely signed decisions made by company boards.
A Look Out Circular (LOC) restricts Anil Ambani from leaving India without official clearance, signaling the seriousness of the investigation and preventing possible evasion during the ongoing financial probe.
The ED conducted searches at 35 locations linked to nearly 50 companies and 25 individuals, arrested Partha Sarathi Biswal for arranging fake bank guarantees, and SEBI banned Ambani from trading for five years over related fund diversion charges.