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The Enforcement Directorate (ED) has frozen assets worth approximately INR 75 billion (USD 853 million) linked to the Reliance Anil Ambani Group (RAAG) as part of an ongoing money-laundering investigation. The ED alleges that companies like Reliance Communications Ltd (RCOM) and its affiliates diverted INR 136 billion in loans, including a sum of USD 569 million from YES Bank, between 2017 and 2019. These loans were reportedly misused through a practice called loan "evergreening" and routed through shell companies. Additionally, bribes were allegedly paid to bank officials to facilitate these transactions.
The Enforcement Directorate (ED) has taken a significant step by freezing assets valued at approximately INR 75 billion (USD 853 million) tied to companies within the Reliance Anil Ambani Group. This move is part of an ongoing investigation into alleged money-laundering activities. The ED has linked this action to the misuse of loans taken by Reliance Communications Ltd (RCOM) and its affiliated companies, which allegedly involved the diversion of around INR 136 billion and more than USD 569 million in loans from YES Bank between 2017 and 2019. Advertisement
The ED's probe suggests that these loans were misused through a practice called "loan evergreening," which involves providing new loans to stressed borrowers to repay old ones. This is viewed as an effort to artificially maintain the financial health of these companies. Additionally, it is alleged that the loans were diverted through shell companies to conceal the real purpose of these funds.
The companies accused, including Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), are said to have received over INR 100 billion in public funds. These funds were allegedly misdirected, with transactions including routing funds to related entities and investing in mutual funds, all in violation of loan terms.
The ED has also blocked transactions on residential units and land parcels across key Indian cities such as Mumbai, Delhi, and Chennai. This includes the family residence of Anil Ambani in Mumbai, which has now been implicated in the investigation. According to the ED, the funds were misused not only for repayment purposes across different entities but also for transfers to related parties, all contrary to the terms of the loans sanctioned.
Furthermore, reports from government sources suggest that bribes were paid to YES Bank officials to ensure the disbursement of these loans. The ED's investigation, which includes searches at multiple properties linked to the group, highlights a pattern of financial mismanagement and misuse of public funds.
Reliance Infrastructure Ltd, another Anil Ambani Group company, responded by stating that the ED's action has not impacted its operations, employees, or shareholders. The company emphasized that Anil Ambani is no longer a part of its board. Other group companies have not publicly commented on the matter, and YES Bank has declined to provide any statements.
Source Reuters
5th Jun, 2025
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