The Enforcement Directorate (ED) continued its raids for the third consecutive day on Saturday, targeting over 35 premises linked to Reliance Anil Dhirubhai Ambani Group (RADAG) companies in Mumbai, as part of a money laundering investigation tied to an alleged ₹3,000 crore bank loan fraud with Yes Bank. The searches, conducted under the Prevention of Money Laundering Act (PMLA), have led to the recovery of numerous documents and computer peripherals, with the agency focusing on 50 companies and 25 individuals, including key executives.
The probe centers on allegations of illegal diversion of ₹3,000 crore in loans disbursed by Yes Bank to RADAG companies between 2017 and 2019. ED sources allege a “well-planned scheme” involving back-dated credit approval memorandums, lack of due diligence, and violations of Yes Bank’s credit policies.
The agency is investigating a suspected “bribe-loan nexus,” noting that Yes Bank promoters received payments in their personal accounts just before loan approvals. Loans were allegedly diverted to shell companies and group entities with weak financials, common directors, and inadequate documentation.
Also Read: SC Rejects ED’s Appeal in Karnataka CM Wife Case
The investigation stems from two CBI FIRs filed in September 2022 against Yes Bank’s former MD Rana Kapoor and RADAG firms, Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL), alongside inputs from SEBI, National Housing Bank, National Financial Reporting Authority, and Bank of Baroda. SEBI’s report highlighted RHFL’s corporate loan book surging from ₹3,742.6 crore in FY 2017-18 to ₹8,670.8 crore in FY 2018-19, raising red flags about irregular approvals.
Additionally, the ED is probing a ₹1,050 crore loan fraud involving Reliance Communications (RCOM) and Canara Bank, undisclosed foreign assets, and a ₹2,850 crore investment by Reliance Mutual Fund in Yes Bank’s Additional Tier-1 (AT-1) bonds, suspected to involve a quid pro quo.
The State Bank of India recently classified RCOM and Anil Ambani as “fraud” accounts, with an exposure of ₹2,227.64 crore in fund-based loans and ₹786.52 crore in bank guarantees, reported to the RBI on June 24, 2025. A broader ₹10,000 crore loan diversion involving Reliance Infrastructure is also under scrutiny.
Reliance Power and Reliance Infrastructure clarified in stock exchange filings that the raids, targeting older transactions linked to RCOM and RHFL, have “no impact” on their operations, emphasizing no financial or governance ties to the probed entities. Anil Ambani, who resigned from RCOM’s board in 2019, is not currently a director of the listed group companies.
The ongoing raids signal heightened regulatory scrutiny of corporate lending practices, with potential implications for banking accountability. The ED continues to interrogate individuals and analyze seized evidence to unravel the alleged financial irregularities.
Also Read: ED Seizes ₹681 Crore in Assets from Ramprastha Group in Massive Homebuyers’ Fraud Case!