The Reliance Group of Anil Ambani faces intense investigation after the Enforcement Directorate conducted raids at more than 35 locations in Delhi and Mumbai against 50 firms and 25 individuals. The investigation focuses on the illegal diversion of ₹3,000 crore in loans Yes Bank provided to its customers from 2017 through 2019.
The ED discovered a sophisticated scheme which included bribery payments and fake documentation and backdated loan approval processes. The investigation revealed three major issues: loans were approved on the same day applications were submitted and there were no credit checks and funds were transferred through shell companies. The RAAGA companies shared multiple directors and addresses which created significant concerns for investigators.
The ED received investigative information from SEBI together with the National Housing Bank and the National Financial Reporting Authority. The corporate loan portfolio of Reliance Home Finance Ltd expanded from ₹3,742 crore to ₹8,670 crore during one year but now faces scrutiny for improper approval procedures.
The State Bank of India has designated Reliance Communications and Anil Ambani as “fraud” entities while preparing to file a complaint with the CBI.
