Mumbai, July 26 The Enforcement Directorate (ED) raids on the premises and people linked with Anil Ambani’s Reliance Group (RAAGA Companies) intensified on Saturday, as investigators likely seized voluminous documents, hard drives, and other digital records from several locations across Mumbai and Delhi
The raids first began on Thursday in connection with a money laundering probe related to the Yes Bank loan fraud case.
The enforcement watchdog and the Central Bureau of Investigation (CBI) conducted a large-scale money laundering probe into the matter involving over Rs 24,000 crore, according to reports.
The operation is part of a broader investigation into alleged financial irregularities, including possible diversion of funds, loan fraud, and money laundering.
The ED’s probe is focused on whether funds from banks were routed through shell entities and misused by group firms. Meanwhile, the CBI has reportedly begun its own inquiry into other companies within Anil Ambani’s Reliance Group.
Subsequent to FIRs registered by the CBI, the ED started probing the offence of money laundering by RAAGA Companies under the Prevention of Money Laundering Act (PMLA). Other agencies and institutions also shared information with ED, such as the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, according to reliable sources.
Preliminary investigation by ED has revealed a well-planned and thought-out scheme to divert/siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials, including the Promoter of Yes Bank Limited, is also under the scanner.
Preliminary probe revealed illegal loan diversion of around Rs 3,000 crore from Yes Bank (from 2017 to 2019). ED has found that just before the loan was granted, the Yes Bank promoters received money in their accounts. The agency is also investigating this nexus of bribery and the loan.
The regulator has found gross violations in Yes Bank loan approvals to RAAGA companies, such as Credit Approval Memorandums (CAMs) were back-dated, investments were proposed without any due diligence/credit analysis in violation of the Bank's Credit Policy, inter alia.
In violation of the loan terms, these loans were further diverted to many group companies and shell companies.
SEBI is also learnt to have shared its findings with ED in the case of RHFL. A dramatic increase in corporate loans by RHFL, from Rs 3,742.60 crore in FY 2017-18 to Rs 8,670.80 crore in FY 2018-19, is also under ED lens.
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