ED raids Anil Ambani-linked firms in Mumbai after SBI tags him and RCom ‘fraud’

In a major escalation of scrutiny against Anil Ambani, the Enforcement Directorate (ED) on July 24 carried out raids at several locations in Mumbai linked to his group companies, days after the State Bank of India (SBI) officially declared Reliance Communications (RCom) and the industrialist himself as “fraudulent entities.”

While Ambani’s personal residence was not searched, ED teams from Delhi and Mumbai swooped down on premises connected to key companies of the Reliance Anil Dhirubhai Ambani Group (RAAGA), probing allegations of large-scale money laundering.

ED acts on multi-agency intel; public funds misuse suspected

The enforcement action is reportedly based on inputs from multiple regulatory and investigative bodies, including the National Housing Bank, SEBI, the National Financial Reporting Authority, Bank of Baroda, and two FIRs filed by the CBI. Senior business executives associated with Ambani’s companies are also under investigation.

According to ED sources, the searches have uncovered evidence of a “planned scheme” to divert public funds, misleading banks, institutional investors, and shareholders in the process.

Yes Bank loans under lens; funds allegedly routed to insiders

A central focus of the probe is a suspected illegal diversion of ₹3,000 crore in loans taken from Yes Bank between 2017 and 2019. Officials claim that funds were suspiciously routed to entities tied to the bank’s own promoters shortly before being disbursed to the Ambani-led firms.

Particular scrutiny has been directed at Reliance Home Finance Ltd (RHFL), where corporate loan disbursals surged dramatically — from ₹3,742.60 crore in FY18 to ₹8,670.80 crore in FY19 — triggering alarms among regulators. A bribery angle involving Yes Bank’s former promoters is also under review.

SBI flags RCom and Ambani under RBI fraud norms

The ED raids come just days after SBI’s June 13 decision to flag both RCom and Anil Ambani as ‘fraud’ under RBI’s fraud risk management guidelines. On June 24, the bank formally reported the classification to the RBI and is preparing to lodge a criminal complaint with the CBI.

In its filings, SBI revealed a massive exposure to RCom, including ₹2,227.64 crore in fund-based principal dues and ₹786.52 crore in non-fund based guarantees. The account has remained in default since August 2016.

Insolvency battle deepens

Reliance Communications is already undergoing Corporate Insolvency Resolution under the IBC since 2020, with a resolution plan submitted to the NCLT in Mumbai still awaiting final approval. Meanwhile, SBI has launched parallel personal insolvency proceedings against Anil Ambani, also pending before the NCLT.