ED raids Anil Ambani-linked firms in loan fraud

New Delhi

The Enforcement Directorate (ED) on Thursday conducted major raids at over 35 locations, targeting 50 companies and more than 25 individuals linked to Anil Ambani’s Reliance Group (RAAGA Companies). The action is part of a probe into a ₹3,000 crore loan fraud involving Yes Bank.

The investigation follows FIRs filed by the Central Bureau of Investigation (CBI) and is being pursued under the Prevention of Money Laundering Act (PMLA). The ED also received key inputs from agencies like the National Housing Bank, SEBI, NFRA, and Bank of Baroda.

Preliminary findings suggest a large-scale scheme to divert public funds through fake loans, misrepresentation, and bribery. The ED suspects that Yes Bank promoters received funds in their firms just before issuing questionable loans to RAAGA companies between 2017 and 2019.

ED has found that basic lending procedures were ignored. Credit Approval Memorandums were allegedly backdated, and loans were disbursed without due diligence. Violations include loans given to shell companies, borrowers with the same addresses or directors, and funds being diverted to group entities instead of their intended use.

SEBI also flagged unusual spikes in corporate lending by Reliance Home Finance Ltd. (RHFL), which more than doubled from ₹3,742 crore in 2017–18 to ₹8,670 crore in 2018–19.

Officials believe loans were often disbursed on the same day they were applied for, or even before official approval. Misuse of financial records and evergreening of loans were also observed.

The ED’s investigation continues as it uncovers more financial irregularities involving Yes Bank, RAAGA companies, and Anil Ambani’s business network.