Is it another blow for Anil Ambani’s business, which had just started to gain the attention of investors? The Enforcement Directorate (ED) on Thursday launched a major crackdown across Mumbai and Delhi, conducting searches at over 35 locations linked to Anil Ambani’s companies and Yes Bank. The raids are part of a probe into an alleged Rs 3,000 crore bank loan fraud and suspected money laundering.
What has triggered the latest ED raids?
This case has an old history, dating back to 2017–19. The ED is investigating how loans worth Rs 3,000 crore were allegedly diverted from Yes Bank to companies under the Reliance Anil Dhirubhai Ambani Group (RAAGA) during that period.
ED officials say that just before the loans were sanctioned, money was transferred to entities related to Yes Bank promoters, raising questions of a possible “bribe-for-loan” nexus. The agency suspects gross irregularities in the loan approval process, including backdated credit approval memos and loans being granted without proper due diligence.
Anil Ambani summoned in Yes Bank fraud case in 2020
Back in March 2020, the ED had summoned several high-profile industrialists in connection with the Yes Bank fraud case, including Anil Ambani. However, Anil Ambani, in his defence, said that the Reliance Group’s exposure to Yes Bank was fully secured and conducted as part of regular business. Ambani also claimed there were no financial ties between his group and Yes Bank founder Rana Kapoor or any members of his family.
On March 8, 2020, Yes Bank founder Rana Kapoor, under whom the loans were reportedly diverted, was arrested on charges of accepting kickbacks in exchange for sanctioning large loans, many of which turned into bad debts.
According to media reports, India’s central bank intervened in early March 2020 after Yes Bank struggled under mounting non-performing assets (NPAs), governance issues, and failed capital-raising efforts.
Yes Bank had also issued a possession notice to take control of premises at Nagin Mahal in Santacruz and two other Mumbai offices—assets backing the loan—after Ambani’s group failed to repay, even after a 60-day notice issued on May 5, 2020.
CBI FIRs and regulatory inputs trigger deeper scrutiny by ED
According to a report by PTI, the money laundering case is based on two FIRs filed earlier by the CBI, along with inputs from agencies such as SEBI, the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda. This joint scrutiny has prompted the ED to dig deeper into the financial dealings of major corporate borrowers linked to Yes Bank during the period when Rana Kapoor was at the helm.
Timeline of Anil Ambani’s downfall
Once among India’s most powerful industrialists, Anil Ambani’s decline began between 2014 and 2017. Several of his companies, including Reliance Communications and Reliance Naval and Engineering, ran into financial trouble.
Reliance Communications eventually filed for bankruptcy, while Reliance Capital was dragged into insolvency proceedings by the Reserve Bank in 2021.
In 2022, SEBI also barred Anil Ambani and others from acting as directors of any listed entity due to fund diversion charges. He also stepped down from the boards of Reliance Infrastructure and Reliance Power. In 2024, SEBI extended the ban, prohibiting him from participating in the securities market for five years.
SBI flags Anil Ambani and his firm for fraud risk
Acting under the Reserve Bank of India’s guidelines on fraud risk management, SBI flagged both the promoter and the company on June 13, 2025, based on its internal policy.
Alongside the company’s insolvency case, SBI has also begun personal insolvency proceedings against Anil Ambani under the same law.
Reliance Power and Reliance Infra distance themselves from ED action
Both Reliance Power and Reliance Infrastructure have distanced themselves from the matter. Reliance Infrastructure said in its statement, “The said actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Infrastructure.”
Reliance Power stated, “The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old.”
Both Reliance Power and Reliance Infrastructure are separate and independent listed entities with no business or financial linkage to RCom or RHFL.
The companies also clarified that Anil D. Ambani is not part of their boards, and therefore, any actions taken against RCom or RHFL do not affect their governance or operations.