Anil Ambani Summoned by ED in ₹17,000 Cr Loan Fraud Probe

In a development that has sent shockwaves through India’s financial and political spheres, the Enforcement Directorate (ED) has summoned Reliance Group Chairman Anil Ambani for questioning on August 5. The move is part of a sweeping investigation into alleged financial irregularities and loan fraud pegged at a staggering ₹17,000 crore, involving various group companies under the Reliance Anil Dhirubhai Ambani Group (ADAG).

Background of the Case: ₹3,000 Crore in Loan Diversions at the Core

At the heart of the probe is the alleged illegal diversion of loans worth approximately ₹3,000 crore, disbursed by Yes Bank to Reliance Group companies between 2017 and 2019. According to ED sources, the investigation is not limited to domestic transactions—it also tracks the creation of undisclosed foreign bank accounts and offshore assets, allegedly built using public funds.

The agency has flagged serious lapses in due diligence, including backdated Credit Approval Memorandums, missing documentation, and violations of Yes Bank’s internal credit policies. The loans, meant for legitimate business purposes, were reportedly routed through a web of shell companies and inter-linked entities, many of which shared common directors, addresses, and poor financial backgrounds.

Mega Raids and Expanding Scope: 35 Locations, 50 Companies, 25 Individuals

In a massive operation launched on July 24, ED teams raided over 35 locations in Mumbai, Delhi, Kolkata, and Bhubaneswar, targeting more than 50 companies and 25 individuals. These included executives of Anil Ambani Group firms and linked entities. A large volume of documents, digital data, and computer peripherals were seized during the three-day search operation conducted under the Prevention of Money Laundering Act (PMLA).

ED officials stated that they are also probing a fake bank guarantee racket, and have registered an Enforcement Case Information Report (ECIR) based on earlier FIRs filed by the CBI and the Economic Offences Wing (EOW) of the Delhi Police.

SEBI’s Explosive Findings: ₹10,000 Crore Routed via Undisclosed Related Party

In a parallel but related investigation, SEBI (Securities and Exchange Board of India) found that Reliance Infrastructure (R Infra) allegedly diverted ₹10,000 crore through a private firm, CLE Pvt Ltd, which was not disclosed as a related party. According to SEBI’s report accessed by The Economic Times, the transactions between R Infra and CLE were kept hidden from shareholders and audit committees, violating regulatory norms.

SEBI found that:

CLE received ICDs (inter-corporate deposits) and corporate guarantees.
The financial exposure reached ₹8,302 crore by March 2022.
From 2013 to 2023, CLE transactions made up 25% to 90% of R Infra’s total assets annually.
Emails associated with CLE’s bank accounts ended with @relianceada.com, directly linking it to the Reliance Group.
CLE identified R Infra as its promoter in submissions to Yes Bank.
Audit notes and internal company documents referred to CLE as a group company.

Despite these findings, Reliance Infra has maintained that the total exposure was only ₹6,500 crore, and a legal settlement for recovery is currently pending in the Bombay High Court, mediated by a retired Supreme Court judge.

Corporate Response: Denial, Distance, and Legal Distinction

Companies under the ADAG umbrella have issued public statements distancing themselves from the investigation. A Reliance Power spokesperson clarified that the ED action “has no impact” on their business operations, stakeholders, or governance, and said it pertains to older transactions involving Reliance Communications (RCOM) and Reliance Home Finance Limited (RHFL).

Reliance Power emphasized its independence from RCOM and RHFL.
It noted that RCOM is under insolvency proceedings and RHFL has been fully resolved by a Supreme Court ruling.
Anil Ambani no longer serves on the board of Reliance Power.
In 2018, My leader @RahulGandhi warned the nation:

“The PM and Anil Ambani jointly carried out a ₹130,000 crore surgical strike on Indian Defence forces… You betrayed India’s soul.”
👉 #RafaleScam

Many laughed. Few believed.

ED has now summoned Anil Ambani in a ₹17,000… pic.twitter.com/YRhrf0hU4y— Manickam Tagore .B🇮🇳மாணிக்கம் தாகூர்.ப (@manickamtagore) August 1, 2025

SBI & SEBI Tighten the Noose: Fraud Declarations and Market Bans

The State Bank of India (SBI) has also weighed in, declaring RCOM and Anil Ambani himself as “fraud accounts” as far back as November 2020. Although an earlier complaint filed by SBI was withdrawn after a court stay, the issue has resurfaced amid the ED’s deeper scrutiny.

Meanwhile, SEBI last year banned Anil Ambani and 24 other individuals—including former key executives of RHFL—from the securities market for five years. It also imposed a ₹25 crore fine on Ambani, terming the fund diversions a fraudulent scheme that eroded confidence in India’s financial system. The total financial penalty on all parties exceeds ₹625 crore.

Political Fallout: Congress Slams Modi, Recalls Rafale Controversy

The ED summons has also reignited political tensions. Congress MP Manickam Tagore resurfaced Rahul Gandhi’s 2018 accusation where he called the Rafale deal a “₹1.3 lakh crore surgical strike on Indian defence forces” allegedly executed by PM Modi and Anil Ambani.

“ED has now summoned Anil Ambani in a ₹17,000 crore loan fraud case... Will Modi answer now?” Tagore questioned, while accusing the government of complicity in favouring the industrialist during the controversial Rafale offset contract, which was awarded to an Ambani-linked firm over HAL.

Key Allegations and Violations Summarised

₹3,000 crore illegally diverted loans from Yes Bank (2017–2019).
₹10,000 crore allegedly routed via CLE Pvt Ltd, violating disclosure norms.
Use of shell entities, loan evergreening, and related party disguise.
Bribes allegedly paid to Yes Bank promoters in exchange for loans.
SEBI, NFRA, NHB, and Bank of Baroda have submitted incriminating reports.
SEBI ban and ₹625 crore in penalties for RHFL-linked fraud.
SBI’s “fraud” classification of RCOM and Ambani revived.

What Lies Ahead

As Anil Ambani appears before the ED on August 5, the investigation marks a pivotal moment for India's regulatory ecosystem. With multiple watchdogs including the CBI, ED, SEBI, NFRA, and NHB involved, the outcome of this probe could have lasting implications—not just for Ambani and his empire, but also for public trust in India’s financial institutions.

The next few weeks may determine whether this is the beginning of long-overdue corporate accountability—or just another headline in the saga of high-profile financial scandals.

With inputs from agencies

Image Source: Multiple agencies