The Enforcement Directorate (ED) has intensified its investigation into the Anil Ambani-led Reliance ADA Group (ADAG), targeting assets worth Rs 2,000 crore linked to Reliance Infrastructure Ltd. The assets are under scrutiny for alleged violations of the Foreign Exchange Management Act (FEMA), with attachment proceedings expected to commence within two weeks. This development follows ED searches at six locations in Mumbai and Indore, part of a broader probe into loan averting and due diligence lapses within the group.

The ED’s investigation centers on an alleged fund diversion of Rs 17,000 crore across multiple ADAG companies. Inputs from at least 30 banks have highlighted potential lapses in lending practices, further fueling the agency’s scrutiny. The probe also draws on a recent Central Bureau of Investigation (CBI) chargesheet, which alleges a quid pro quo arrangement between Yes Bank and ADAG firms, prompting the ED to explore overlaps with money laundering under the Prevention of Money Laundering Act (PMLA) and foreign exchange violations.

Recent actions against ADAG include the arrest of Reliance Power’s Chief Financial Officer, Ashok Kumar Pal, last Friday in connection with a fraudulent bank guarantee scheme. Additionally, Anil Ambani appeared before the ED as part of the PMLA investigation, marking a series of regulatory blows to the conglomerate. These developments signal mounting pressure on one of India’s prominent business groups, raising questions about its financial practices and future operations.

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