ED Raids 35 Locations Linked to Anil Ambani’s Reliance Group in ₹3,000 Crore Money Laundering Probe

Mumbai, July 24, 2025 — In one of the most significant actions taken this year under the Prevention of Money Laundering Act (PMLA), the Enforcement Directorate (ED) launched sweeping raids across 35 locations associated with Anil Ambani’s Reliance Anil Dhirubhai Ambani Group of Companies (RAAGA). The searches, covering over 50 companies and more than 25 individuals, are part of an extensive investigation into an alleged ₹3,000 crore money laundering scam tied to loan fraud at Yes Bank Ltd between 2017 and 2019.

While the scale of the operation is extensive, officials clarified that Anil Ambani’s residence in Mumbai was not part of the search operation. The ED’s ongoing action has sent ripples across financial and corporate circles, as several regulatory and investigative bodies are also probing the financial dealings of RAAGA group entities.

 

Multiple Investigative Agencies Involved

The ED’s action on Thursday was triggered by two FIRs filed by the Central Bureau of Investigation (CBI). In addition, the Income Tax Department and the Securities and Exchange Board of India (SEBI) are reportedly conducting parallel investigations into alleged tax evasion, foreign exchange violations, and irregularities in corporate governance involving RAAGA-linked firms.

Significantly, Anil Ambani is also under investigation by the ED under the Foreign Exchange Management Act (FEMA) for suspected foreign exchange violations. Sources indicated that multiple inputs from various institutions — including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda — prompted the ED to initiate its probe.
 

Yes Bank Loan Diversion at the Core

At the heart of the case is the alleged diversion of public funds through loans issued by Yes Bank to companies under the RAAGA banner. Between 2017 and 2019, loans amounting to approximately ₹3,000 crore were disbursed to firms linked to the Reliance Group. According to ED officials, before the actual disbursal of these loans, funds were reportedly routed to entities affiliated with Yes Bank’s promoters — hinting at a collusive arrangement involving bribes and kickbacks.

Preliminary findings point to what investigators describe as a “well-planned and deliberate scheme” to siphon public funds. This scheme allegedly involved misleading not only banks but also shareholders and regulators, by using fraudulent documentation and deceptive accounting methods.
 

Alleged Modus Operandi
 

The ED has flagged several systemic irregularities in the loan approval and disbursal processes, including:

• Backdated Credit Approval Memorandums (CAMs)
• Lack of credit evaluation or due diligence
• Loans disbursed before formal application was filed
• Funds routed to shell companies or entities with common directors and addresses
• Evergreening of loans — where new loans were sanctioned to repay older ones, masking bad loans on company books

These methods, officials say, helped the group maintain an artificial image of financial stability while misusing loan proceeds.

 

SEBI’s Red Flags and RHFL’s Loan Surge
 

SEBI has submitted critical evidence to the ED concerning Reliance Home Finance Ltd (RHFL). Notably, the corporate loan book of RHFL surged from ₹3,742.6 crore in FY 2017–18 to ₹8,670.8 crore in FY 2018–19 — more than doubling in just one financial year. This sharp rise, coupled with alleged irregularities in loan approvals and disbursal timelines, has raised red flags regarding potential misuse of funds and manipulation of accounting practices.

SEBI’s report supports the ED’s hypothesis that RHFL and other group firms engaged in reckless lending practices with little oversight or transparency, further strengthening the money laundering charges.

 

SBI Declares Anil Ambani, RCom as ‘Fraud’ Entities
 

Adding to Ambani’s legal troubles, the State Bank of India (SBI) recently declared Anil Ambani and Reliance Communications (RCom) as fraudulent accounts under Reserve Bank of India (RBI) guidelines. This declaration, made on June 13, 2025, involves outstanding dues of ₹2,227.64 crore in principal and ₹786.52 crore in guarantees owed by RCom to SBI. The bank has also initiated personal insolvency proceedings against Ambani and is preparing to file a formal complaint with the CBI.

RCom, already undergoing resolution under the Corporate Insolvency Resolution Process (CIRP), is now under deeper scrutiny for its financial links with other Reliance Group entities and its role in the alleged fund diversion network.

Senior Executives Under Scanner

As the probe intensifies, several top executives from Reliance Group companies are being questioned. The ED aims to gather more details on internal communications, transaction records, and decision-making processes tied to the loan sanctions and subsequent fund utilization.

Although RAAGA has yet to issue an official statement, sources close to the group maintain that the companies are cooperating with investigators and deny any wrongdoing.

 

What Lies Ahead

With multiple agencies — including the ED, CBI, SEBI, I-T Department, and NFRA — examining various angles, the case could become one of India’s most high-profile corporate investigations in recent years. The focus now shifts to asset tracing, recording witness statements, and securing financial evidence to build a comprehensive case under the Prevention of Money Laundering Act.

 

Conclusion:
 

The ED's massive crackdown on Anil Ambani’s Reliance Group signals a renewed push for financial transparency and accountability. While Ambani has not been directly raided, the expanding probe and damning preliminary findings suggest that Indian enforcement agencies are closing in on corporate misuse of public funds. The coming weeks will likely determine whether the evidence leads to formal charges — or a turning point in how corporate fraud is tackled in India.