The Enforcement Directorate conducted raids Thursday at the Delhi and Mumbai premises of Reliance Group chairman Anil Ambani following a preliminary investigation into an alleged Rs 3,000 crore loan diversion from Yes Bank between 2017 and 2019. According to the ED, this illegal diversion of funds was part of a well-planned scheme to siphon off public money by misleading banks, shareholders, investors, and financial institutions. The investigation reveals that just before the loans were approved, the promoters of Yes Bank received funds in their own group entities. Shares of Anil Ambani-led companies tumbled sharply today following news of Enforcement Directorate (ED) raids related to an alleged Rs 3,000 crore loan diversion case. Reliance Power Ltd dropped 4.79%, trading at Rs 59.83, down Rs 3. Reliance Infrastructure Ltd also saw a sharp fall of 4.99%, trading at Rs 360, down Rs 18.90.
The ED's action follows FIRs filed by the Central Bureau of Investigation (CBI), and inputs from other regulatory bodies such as the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda.The case involves loans given to RAAGA companies (part of the Reliance ADA Group), where ED has found several violations. These include back-dated approval documents, missing credit analysis, and disbursal of loans without proper documentation or due diligence. Many of the borrowing entities had weak financials, shared common addresses and directors, and were suspected shell companies.
Some loans were even disbursed on the same day as application or even before formal sanction, pointing to serious lapses. There’s also evidence of “evergreening”, a practice where fresh loans are issued to repay old ones, masking defaults.One focus area is Reliance Home Finance Limited (RHFL), where SEBI flagged a dramatic rise in corporate loans from Rs 3,742 crore in FY18 to Rs 8,670 crore in FY19. ED is now probing irregular approvals and violations in loan processes at RHFL.