The Enforcement Directorate (ED) continued its searches for the third consecutive day on Saturday, July 26, 2025, at multiple locations in Mumbai linked to companies belonging to Anil Ambani's Reliance Group. The probe agency has recovered a number of documents and computer peripherals. These raids are part of a money laundering investigation related to an alleged bank loan fraud of ₹3,000 crore and other financial irregularities.
The ED's searches, initiated on July 24, 2025, are being conducted under the Prevention of Money Laundering Act (PMLA). The searches have covered more than 35 premises belonging to 50 companies and 25 individuals, including a number of executives of the Anil Ambani Group companies.
The investigation primarily concerns the alleged illegal diversion of loans worth approximately ₹3,000 crore, which were disbursed by Yes Bank to Anil Ambani's group companies between 2017 and 2019. The ED is also investigating whether there was a quid pro quo involved in the loan disbursements, specifically examining if bribes were paid to Yes Bank officials, including its promoters.
According to sources, the ED has found "gross violations" in Yes Bank's loan approvals to these companies, including backdated credit approval memorandums and investments proposed without due diligence or credit analysis, in violation of the bank's credit policy. The loans are alleged to have been diverted to various group companies and shell (bogus) companies. The ED is also examining a ₹1,050 crore fraud between RCOM and Canara Bank and possible undisclosed foreign assets. Furthermore, Reliance Mutual Fund's investment of ₹2,850 crore in high-risk AT-1 bonds is under scrutiny, with the ED suspecting irregularities.
Reliance Power and Reliance Infrastructure, two companies of the group, informed the stock exchanges on Thursday that the ED's actions had "absolutely no impact" on their business operations, financial performance, shareholders, employees, or any other stakeholders. The companies also clarified that Anil Ambani is not on the boards of either company and has no financial linkages with Reliance Communications (RCOM) or Reliance Home Finance Limited (RHFL), which are central to the probe.
The ED's investigation is based on FIRs registered by the Central Bureau of Investigation (CBI) and information received from other agencies and institutions, including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda. These reports suggest a deliberate scheme to siphon public funds, cheat investors, and divert loans through shell companies. Preliminary investigations by the ED have revealed a "well-planned and thought-out scheme to divert/siphon off public money by cheating banks, shareholders, investors, and other public institutions". The investigation has also flagged issues such as loans issued to companies with poor financials, common directors across multiple borrowing entities, lack of documentation, and routing of funds to shell entities.
