As part of a widening money laundering probe tied to the Yes Bank loan scam, the Enforcement Directorate (ED) on Thursday searched more than 35 locations connected to the Reliance Anil Dhirubhai Ambani Group (RAAGA) across Mumbai and Delhi. The operation, based on multiple intelligence inputs and two FIRs filed by the Central Bureau of Investigation (CBI), is centered around suspected financial irregularities involving Rs 3,000 crore in loans.

The central investigation agency revealed that the search covered offices and company premises associated with Anil Ambani’s group. However, officials confirmed that Ambani’s personal residence was not among the properties targeted during this phase of the operation.

The ED is acting upon reports shared by several oversight bodies such as the Securities and Exchange Board of India (SEBI), the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda. The case revolves around alleged financial misconduct between 2017 and 2019, during which large loans from Yes Bank were reportedly diverted to shell companies and related entities.

A significant aspect of the probe concerns Reliance Home Finance Ltd (RHFL). Investigators observed that its corporate loan disbursements rose sharply from Rs 3,742.60 crore in FY 2017–18 to Rs 8,670.80 crore in the following year. Authorities consider this sudden spike a red flag pointing to deeper irregularities in loan issuance practices.

According to sources within the ED, “The offence of bribing bank officials including, promoter of Yes Banks Limited is also under scanner.” Investigators believe that financial benefits may have been extended to Yes Bank’s former promoters right before loans were formally approved to RAAGA companies.

Serious procedural lapses have also been highlighted. The ED reported incidents of backdated documentation, the disbursement of loans without adequate due diligence, and violations of basic credit norms. In some instances, funds were released even before official loan approval was granted. Entities receiving these loans were often financially unsound, with overlapping directors.

Earlier this year, on June 13, the State Bank of India (SBI) designated Reliance Communications (RCom) and Anil Ambani as ‘fraud’ under the Reserve Bank of India’s guidelines on fraud classification and the bank’s internal policy. On June 24, SBI escalated the matter to the RBI, and it is now preparing a detailed complaint to be submitted to the CBI.

Minister of State for Finance, Pankaj Chaudhary, addressing the Lok Sabha on the issue, stated: “SBI’s move was in accordance with the Reserve Bank of India’s Master Directions on Fraud Risk Management and Bank’s Board-approved Policy on Classification, Reporting & Management of Frauds.”

SBI’s exposure to RCom consists of a fund-based loan amounting to Rs 2,227.64 crore along with accrued interest and expenses dating back to August 26, 2016. In addition, the bank holds non-fund-based guarantees totaling Rs 786.52 crore.

RCom is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. A resolution plan has already been filed with the National Company Law Tribunal (NCLT) in Mumbai, pending final approval. Furthermore, SBI has initiated personal insolvency proceedings against Anil Ambani, also being heard by the NCLT.

The ED indicated that its ongoing investigation now covers over 50 companies and around 25 individuals, suggesting a much larger network involved in the alleged misuse of public funds. The agency maintains that evidence so far points to a “well-planned and thought-out scheme to siphon off public money by cheating banks, shareholders, investors and other public institutions,” as reported by ANI.