According to media reports, the Enforcement Directorate (ED) conducted raids on Thursday, July 24, in Delhi and Mumbai in connection with an alleged ₹3,000 crore loan fraud involving Yes Bank. The searches are being carried out under Section 17 of the Prevention of Money Laundering Act (PMLA).
As per news agency PTI, this action is based on two FIRs filed by the CBI and information received from agencies like SEBI, National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).
An ED team arrived in the morning to raid companies linked to Anil Ambani’s Reliance Group.
The ED probe is based on two first information reports registered by the Central Bureau of Investigation ”Other agencies and institutions also shared information with the ED, such as — The National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), Bank of Baroda,” said a source. The case relates to loans worth ₹3,000 crore given by Yes Bank to companies linked to Anil Ambani’s Reliance Group between 2017 and 2019.
The ED’s preliminary investigation revealed that these loans were allegedly diverted to shell companies and other group entities. The probe also suggests that Yes Bank officials may have been bribed.
The ED claims this was a “well-planned and deliberate scheme” to siphon funds by misleading banks, shareholders, investors, and public institutions. Key irregularities found include:
Loans given to weak or unverified companies.
Same directors and addresses used for multiple companies.
Missing crucial loan documents.
Money transferred to shell companies.
Evergreening of loans (taking new loans to repay old ones).
The CBI had filed two FIRs related to loans given by Yes Bank to Reliance Home Finance Ltd. and Reliance Commercial Finance Ltd. Both cases name former Yes Bank CEO Rana Kapoor.
Following the raid, shares of Reliance Infrastructure and Reliance Power fell by 5%.
However, Reliance Power stated that these actions do not affect its business, financial performance, shareholders, employees, or stakeholders. The company clarified that the allegations pertain to decade-old transactions involving Reliance Communications (RCom) and Reliance Home Finance (RHFL), and that Reliance Power is a separate, independent entity with no financial ties to them.
Recently, the State Bank of India (SBI) declared Anil Ambani and his company Reliance Communications (RCom) as “fraudulent.”
SBI alleges that RCom misused ₹31,580 crore in loans—using ₹13,667 crore to repay other companies’ loans and transferring ₹12,692 crore to other Reliance Group firms. SBI is in the process of filing a complaint with the CBI. Additionally, personal insolvency (bankruptcy) proceedings against Anil Ambani are ongoing in the National Company Law Tribunal (NCLT), Mumbai.