ED Conducts Extensive Raids on Anil Ambani’s Properties

The Enforcement Directorate (ED) has launched a comprehensive investigation into properties linked to Anil Ambani, the chairman of Reliance Group, in connection with a money laundering case. The raids are taking place across 35 locations in Delhi and Mumbai, targeting over 50 companies and 25 individuals. This action follows two First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI), which allege significant financial irregularities.

Allegations of Financial Misconduct

The ED’s preliminary findings suggest a sophisticated scheme designed to siphon off public funds by deceiving banks, shareholders, investors, and other public institutions. The investigation has uncovered potential bribery involving senior bank officials, including former promoters of Yes Bank Ltd, who allegedly facilitated large unsecured loans.

Yes Bank’s Role in the Financial Scandal

Between 2017 and 2019, Yes Bank reportedly disbursed approximately Rs 3,000 crore in loans to RAAGA companies, entities under the Reliance Anil Ambani Group. The ED claims there was an illegal quid pro quo arrangement where Yes Bank promoters received payments in their privately held concerns just before these loans were sanctioned.

Irregularities and Red Flags Identified

The investigation has highlighted several red flags, such as loans issued to companies with poor or unverified financials, common directors and addresses across multiple borrowing entities, lack of essential documentation in sanction files, routing of funds to shell entities, and instances of “loan evergreening,” where new loans were used to repay existing ones.

Bribery Allegations Against Yes Bank Executives

Sources indicate that senior Yes Bank executives and promoters may have been involved in facilitating these irregular loans. The probe agency suspects that key bank officials received personal payments or benefits for approving large unsecured loans to certain RAAGA companies.

Regulatory Bodies Share Findings with ED

Several regulatory and financial bodies have shared their findings with the ED. These include the National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda. SEBI’s report highlights serious irregularities within Reliance Home Finance Limited (RHFL), noting that the firm’s corporate loan portfolio nearly doubled from Rs 3,742 crore in FY 2017-18 to Rs 8,670 crore in FY 2018-19.