Why ED raided Anil Ambani’s Reliance Group-linked 50 companies

The Enforcement Directorate (ED) raided over 35 premises linked to Anil Ambani’s Reliance Group companies involving around 50 companies and 25 individuals in connection with an alleged Rs 3,000 crore loan fraud and money laundering case. The raids were initiated after two FIRs registered by the Central Bureau of Investigation (CBI) concerning loans extended by Yes Bank to Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), both part of the Reliance Anil Ambani Group (RAAGA).

The ED’s preliminary investigation revealed a well-planned scheme to siphon off public money by cheating banks, shareholders, investors, and public institutions. This involved allegedly irregular loan approvals, diversion of loans, bribery of senior bank officials including former Yes Bank promoters, and suspicious payments made to Yes Bank promoters’ private accounts shortly before loan disbursal. The investigation also raised concerns over a dramatic increase in corporate loans by RHFL, violations in loan approval processes and regulatory irregularities flagged by SEBI and other financial authorities.

Therefore, the ED’s raid targeted multiple companies linked to Anil Ambani’s group to investigate this large-scale alleged financial malpractice involving illegal diversion of loans and money laundering under the Prevention of Money Laundering Act (PMLA) based on findings from various agencies including SEBI, National Housing Bank, NFRA, and Bank of Baroda.