The Enforcement Directorate (ED) has summoned Anil Ambani, Chairman of the Reliance Group, to appear for questioning on August 5 regarding a money laundering investigation linked to alleged fraudulent loan activities involving his group companies.

This follows a series of raids conducted by the agency between July 24 and 27, spanning more than 35 locations primarily in Mumbai. The searches targeted 50 corporate entities and 25 individuals, including senior executives associated with the Ambani business group. Numerous documents and electronic devices were seized during the probe.

The core of the investigation relates to allegations that loans totaling roughly Rs 3,000 crore, provided by Yes Bank between 2017 and 2019, were diverted illegally among Ambani group companies. According to reports, ED revealed that promoters of Yes Bank reportedly received payments in their ventures just before loan approvals, suggesting a possible bribery link influencing the sanctioning process.

Further examination uncovered multiple procedural violations in loan approvals, such as credit memos being backdated and loans issued without adequate financial analysis or due diligence, contravening bank policies. The funds appear to have been routed to shell companies and group subsidiaries with weak financials and overlapping directorships and addresses, pointing toward deliberate obfuscation.

The ED’s probe draws from two FIRs filed by the Central Bureau of Investigation (CBI), as well as reports shared by financial regulators like the National Housing Bank, SEBI, the National Financial Reporting Authority, and Bank of Baroda. Collectively, these documents outline a “well-planned and thought after scheme” aimed at defrauding banks, investors, and public institutions by misappropriating funds.

Reliance Communications (RCOM) and Reliance Home Finance Limited (RHFL) have been identified as significant subjects of investigation. According to a SEBI report, RHFL’s corporate loan portfolio surged from Rs 3,742 crore in fiscal 2017-18 to Rs 8,670 crore the next year. The State Bank of India has labeled RCOM and Anil Ambani himself as “fraud” accounts, a status designated previously in 2020, with SBI having filed a complaint with the CBI in early 2021, though temporarily stayed by a court order.

In statements to stock exchanges, Reliance Power and Reliance Infrastructure, two separate group companies, clarified that these inquiries and raids do not affect their business operations or financial health. They emphasized that Anil Ambani is not part of their boards, nor do they have any business links with RCOM or RHFL.

Additional scrutiny focuses on a Rs 2,850 crore investment by Reliance Mutual Fund in Additional Tier 1 (AT-1) bonds, which are high-risk instruments used by banks to bolster capital. The ED suspects possible quid pro quo arrangements here. The agency is also investigating alleged diversion of nearly Rs 10,000 crore in loans involving Reliance Infrastructure.

Anil Ambani is expected to give his statement under the Prevention of Money Laundering Act (PMLA) during his questioning at the ED’s Delhi headquarters, where the investigation is underway.