The financial troubles surrounding Anil Ambani’s Reliance Group have deepened further as the Serious Fraud Investigation Office (SFIO) takes over a government probe into alleged large-scale fund diversion and corporate violations across multiple companies under the group.

The case, earlier examined by the Ministry of Corporate Affairs (MCA), was transferred to the SFIO after the ministry’s internal review pointed to serious discrepancies in fund movement among several group entities including Reliance Infrastructure, Reliance Communications, Reliance Commercial Finance, and CLE Pvt. Ltd. Officials said investigators found signs of money being circulated between related companies and used in ways inconsistent with loan agreements.

Multi-Layered Financial Transactions Under Scanner

Sources said the SFIO will now trace the flow of funds across various Reliance entities, analyse how money was layered through multiple transactions, and identify who within the senior management authorised the alleged movements. The findings from this investigation could lead to criminal prosecutions and corporate penalties under the Companies Act.

According to a senior official familiar with the inquiry, the ministry’s initial report revealed “diversion of funds through related entities and irregularities in financial disclosures.”

ED’s Parallel Action and Asset Attachments

The transfer of the case comes just days after the Enforcement Directorate (ED) moved against the debt-laden conglomerate, attaching assets worth nearly Rs 7,500 crore. The seized properties include around 30 assets belonging to Reliance Infrastructure, in addition to holdings linked to Adhar Property Consultancy, Mohanbir Hi-Tech Build, Gamesa Investment Management, Vihaan43 Realty, and Campion Properties.

These attachments are tied to what the ED describes as a multi-crore bank fraud. The agency claims that funds borrowed by Reliance Communications (RCOM) and its affiliates between 2010 and 2012 were misused, with a total outstanding debt of Rs 40,185 crore. At least five banks have since declared those loan accounts fraudulent.

“Evergreening” of Loans and Overseas Transfers

Investigators allege that the group diverted significant sums to related companies, used some of the borrowed funds to repay older loans, and even moved part of the money abroad in a process the ED called “evergreening of debt.”

In its statement, the agency said, “From around 2010–12 onwards, RCOM and its group companies raised thousands of crores from Indian banks, of which Rs 19,694 crore still remains outstanding. These assets turned into NPA, with five banks having declared RCOM’s loan accounts as fraud.”

According to the ED’s estimates, about Rs 13,600 crore was siphoned off through layered transactions, suggesting systematic misuse of credit. The names of Reliance Home Finance, Reliance Commercial Finance, Reliance Infrastructure, and Reliance Power have surfaced during the ongoing probe.

Raids, Arrests, and Growing Legal Trouble

In August, both the Central Bureau of Investigation (CBI) and the ED raided Anil Ambani’s home and offices belonging to senior group executives. Following these searches, a senior finance officer associated with the conglomerate was taken into custody.

The Reliance Group has been facing mounting debt and insolvency proceedings over the past few years. Reliance Communications is already under bankruptcy resolution, while other subsidiaries are struggling with lawsuits and recovery actions from banks and financial institutions.

Broader Implications for Corporate Accountability

Experts believe the MCA’s decision to hand over the case to the SFIO underscores the government’s intent to push for greater transparency and accountability among large corporate houses. The combined investigations by the ED, CBI, SEBI, and now the SFIO mark one of the most extensive multi-agency crackdowns in recent years on a major Indian business group.

With assets frozen, loans under scrutiny, and top executives under the scanner, the Reliance Anil Dhirubhai Ambani Group (R-ADAG) faces a prolonged period of legal and regulatory challenges that could redefine corporate oversight in India.