The Anil Ambani-led Reliance Group is once again in the woods. Reliance Power and Reliance Infrastructure shares were stuck in the lower circuit for the last two sessions.
The stocks tumbled after the Enforcement Directorate (ED) conducted large-scale searches on 35 locations, which were linked to Anil Ambani and almost 50 entities associated with the Reliance Anil Dhirubhai Ambani Group (ADAG) across Mumbai. These raids are part of an ongoing money laundering investigation.
Why is ED conducting allegations of loan fraud and diversion?
The raids are primarily being conducted regarding an alleged loan fraud of around Rs 3,000 crore from Yes Bank between 2017 and 2019. The ED suspects a “well-planned scheme” to siphon off public money by cheating banks, shareholders, and investors. A significant portion of the funds was provided to Reliance ADAG by SBI and various public sector banks, as well as Yes Bank, which was a private company at the time, along with mutual funds.
C Company under scrutiny
A mysterious entity, “C Company,” which was allegedly not disclosed as a related party, is under investigation for its role in diverting large sums of money from Reliance Infrastructure to other Anil Dhirubhai Ambani Group companies.
Bribery angle
The ED is investigating a potential nexus of bribes and loans, with allegations that Yes Bank promoters received funds in their accounts just before loan disbursements to Reliance Group entities.
According to new reports, ED was investigating a purported loan fraud amounting to Rs 14,000 crore linked to Reliance Communications and related entities.
Reliance’s response
Responding to the allegations of ‘bribe for loans’, the company said that they were sanctioned on merit and approved through a proper credit committee process involving more than 30 individuals. “These loans were fully secured and have been entirely repaid, including interest. The outstanding amount is zero,” the company said.
The company highlighted that Anil Ambani resigned from RCOM’s board in 2019 and had no role in its daily operations. It also pointed out that Canara Bank, another lender in the consortium, withdrew its fraud classification against RCOM on July 10, 2025, in the Bombay High Court.
“Fraud” classification by SBI for Reliance Communications
In reply to a query in the Lok Sabha on Monday, the minister of state for finance, Pankaj Chaudhary, stated that the State Bank of India (SBI) had “classified Reliance Communications Ltd along with promoter director Anil Ambani as ‘fraud’ on June 13”. This classification comes after a previous attempt by SBI in November 2020, which was stayed by the Delhi High Court. Following a Supreme Court ruling in 2023, SBI re-initiated the process.
Reliance Power’s stock performance
The share price of Reliance Power has fallen by over 11% in the last five trading sessions. The stock has declined by 15% in the last one month. However, the stock has given a return of 55% in the past six months.
Reliance Infrastructure’s stock performance
Reliance Infra’s share price has corrected by 12% in the last five trading days. The stock price has fallen 15.5% in the past one month and given a return of 37% in the last six months.
