Mumbai: The Enforcement Directorate (ED) has summoned Reliance Group Chairman Anil Ambani for a second round of questioning next week, as part of an ongoing investigation into alleged loan fraud and money laundering involving ₹17,000 crore. Ambani was questioned for over five hours on Tuesday, August 5, at the agency’s Mumbai office.
According to sources, the ED questioned the 66-year-old industrialist about the alleged diversion of loans to shell companies, possible political funding, and whether bribes were paid to bank officials to secure large loans. Ambani is said to have denied knowledge of several transactions under investigation and has sought time to review the financial details presented by the agency.
His questioning was conducted without the presence of legal counsel and was videotaped—standard protocol in high-profile investigations, as the footage may be used as evidence in court proceedings.
Widening Investigation into Bank Fraud
The ED’s summons followed a large-scale search operation across 35 locations linked to 50 companies, which yielded a “substantial amount of incriminating documents,” officials said. This evidence led investigators to reach out to a dozen banks—including SBI, ICICI, Axis, and HDFC—seeking information on how loans were sanctioned to Reliance Group entities like Reliance Housing Finance and Reliance Communications.
Investigators are examining whether loans were used for their sanctioned purposes or siphoned off to shell companies or offshore accounts. The agency claims to have uncovered a “calculated scheme” to defraud banks, investors, shareholders, and public institutions through misuse of loan funds.
Yes Bank Connection and ₹3,000 Crore Diversion
A preliminary probe revealed that ₹3,000 crore in loans from Yes Bank, disbursed between 2017 and 2019, were allegedly diverted illegally. Officials suspect a quid pro quo arrangement, where promoters of Yes Bank may have received payments through private entities shortly before approving large loan amounts.
The investigation found evidence of loans issued to companies with weak financial credentials, shared directors and addresses, missing documentation, and funds being funneled through a web of related entities—a practice known as “loan evergreening.”
₹14,000 Crore Fraud at Reliance Communications
This probe is not limited to Reliance Housing Finance. A separate ₹14,000 crore fraud investigation is also underway involving Ambani’s flagship firm, Reliance Communications (RCom). In June, the State Bank of India (SBI) formally declared RCom’s loan account as “fraudulent,” citing widespread fund diversion, irregular accounting practices, and manipulation of books across group companies.
While the SBI has not yet formally referred the case to the Central Bureau of Investigation (CBI), the bank said its internal review flagged a complex network of financial irregularities tied to RCom and its subsidiaries.
SEBI Case and Financial Decline
Anil Ambani’s financial troubles have multiplied in recent years. India’s securities regulator SEBI earlier ruled that Ambani and senior executives at Reliance Home Finance had siphoned off over ₹5,000 crore by masking them as loans to entities linked to the promoter group. SEBI imposed a ₹25 crore penalty on Ambani and ₹6 lakh on the company.
Once ranked among the world’s richest individuals, Ambani’s business empire has steadily unraveled under the weight of mounting fraud allegations, regulatory crackdowns, and ballooning debt.
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