Anil Ambani Appears Before Enforcement Directorate as ED Intensifies Probe into Alleged Rs 17,000 Crore Loan Fraud

Industrialist Anil Ambani appeared at the headquarters of the Enforcement Directorate (ED) in Delhi on February 26 to record his statement in connection with an ongoing money laundering investigation. Ambani arrived at around 11 am after being summoned for questioning in the case.

His appearance follows the ED’s attachment of his Mumbai residence, ‘Abode’, located in Pali Hill, valued at Rs 3,716.83 crore. The property was attached under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA) by the agency’s Special Task Force as part of its probe into an alleged bank fraud linked to Reliance Communications Ltd (RCOM). Earlier, authorities had already attached a portion of the property worth Rs 473.17 crore. With the latest action, the total value of properties attached from the group has crossed Rs 15,700 crore.

The investigation stems from a First Information Report filed by the Central Bureau of Investigation (CBI) under sections 120-B, 406 and 420 of the Indian Penal Code, 1860, along with section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1989. The FIR names Reliance Communications Ltd, Anil Ambani and others. According to the ED, RCOM and its group entities had borrowed loans from domestic and overseas lenders, with outstanding dues amounting to Rs 40,185 crore.

On August 5 last year, Ambani had previously recorded a statement regarding the loan transactions under scrutiny and sought seven days’ time to furnish supporting documentation. The case forms part of a broader investigation into an alleged Rs 17,000 crore loan fraud involving RCOM.

Minister of State for Finance Pankaj Chaudhary informed Parliament that the State Bank of India (SBI) had classified RCOM and Anil Ambani as “fraudulent” in line with Reserve Bank of India (RBI) guidelines. SBI has notified the RBI and is in the process of preparing a complaint to be lodged with the CBI. In addition, RCOM is alleged to have defrauded Canara Bank of more than Rs 1,050 crore. Sources have indicated that investigators are also examining undisclosed foreign bank accounts and overseas assets.

Earlier disclosures by the ED revealed that Reliance Mutual Fund invested Rs 2,850 crore in AT-1 bonds issued by YES Bank, which were subsequently written down, allegedly resulting in the siphoning of public funds. This aspect of the matter is also under investigation by the CBI. Furthermore, based on data from the Securities and Exchange Board of India (SEBI), the ED found that Reliance Infrastructure diverted substantial sums disguised as inter-corporate deposits to group companies through an undisclosed related-party entity. This entity was not declared, thereby avoiding mandatory approvals and bypassing related-party transaction regulations.

The ED stated that Reliance Infrastructure accepted a haircut of Rs 5,480 crore, received Rs 4 crore in cash, and settled Rs 6,499 crore through assets primarily consisting of non-operational distribution companies, making recovery unlikely. The alleged loan diversion in this segment alone exceeds Rs 10,000 crore.

Last year, the ED’s Special Task Force also attached more than 132 acres of land in Dhirubhai Ambani Knowledge City in Navi Mumbai, valued at Rs 4,462.81 crore, under the PMLA. This attachment is linked to ongoing bank fraud probes involving RCOM, Reliance Commercial Finance Ltd, and Reliance Home Finance Ltd. The cumulative value of assets attached by the ED in cases connected to the Reliance Anil Ambani Group now exceeds Rs 7,500 crore, including earlier attachments worth Rs 3,083 crore.

The money laundering proceedings originate from the CBI FIR filed under the relevant IPC and Prevention of Corruption Act provisions naming RCOM, Ambani and others. The ED has stated that between 2010 and 2012, RCOM and its group companies secured loans from domestic and international lenders, with five banks later classifying the accounts as fraudulent.

According to the agency’s findings, loans taken by one group entity were used to service liabilities of others, routed through related parties, or invested in mutual funds in violation of loan conditions. The ED has alleged that Rs 13,600 crore was diverted for the purpose of loan evergreening, Rs 12,600 crore was transferred to connected parties, and around Rs 1,800 crore was placed in fixed deposits and mutual funds before being liquidated and channelled back into group entities. Investigators also pointed to the misuse of bill discounting facilities and alleged siphoning of funds abroad through foreign remittances.

The ED has reiterated its resolve to pursue financial crime cases vigorously and to secure the recovery of proceeds of crime for the benefit of legitimate claimants.

By fLEXI tEAM