The Enforcement Directorate (ED) on Thursday launched a large-scale crackdown, raiding over 35 locations connected to the Anil Ambani-led Reliance Anil Dhirubhai Ambani Group (ADAG) in a high-profile money laundering investigation. The raids span across 50 companies and more than 25 individuals associated with the group, all under scrutiny for their alleged involvement in a massive bank loan fraud case. The probe, initiated under the Prevention of Money Laundering Act (PMLA), stems from two loan fraud cases registered by the CBI involving Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL), where former Yes Bank chairman Rana Kapoor is also under investigation.
Officials say the ED uncovered serious financial irregularities, including the illegal diversion of around ₹3,000 crore between 2017 and 2019. Investigators claim that Yes Bank promoters received funds in their private entities just before sanctioning loans to Reliance firms, hinting at a bribery-for-loans nexus. The investigation revealed backdated credit documents, shell companies receiving funds, and blatant violations of banking norms. Other agencies like SEBI, National Housing Bank, NFRA, and Bank of Baroda have shared relevant findings with ED to aid the probe. There are also allegations that credit approval memos were manipulated, loans disbursed without risk assessment, and internal due diligence processes were bypassed.
The ED highlighted further red flags including loans issued without proper documentation, diversion of funds to promoter-linked firms, and the evergreening of non-performing loans. RHFL’s corporate loan book saw an abnormal spike from ₹3,742 crore in FY 2017-18 to ₹8,670 crore in FY 2018-19, now under strict scrutiny. Investigators also pointed to common directors and addresses across borrowing entities, suggesting a network of shell operations. While the Reliance ADAG group has yet to provide a detailed explanation, it has acknowledged the developments and stated that a formal statement will be released soon.
