Raids sweep across 35 premises, 50 firms, as probe alleges ₹3,000 crore loan scandal and ‘deliberate deception’
Anil Ambani’s once high-flying business empire has come under fresh fire.
On Thursday, July 24, officials from India’s Enforcement Directorate (ED) fanned out across Mumbai, launching coordinated raids on more than 35 locations linked to the embattled tycoon. The search operations follow a major red flag raised by State Bank of India, which recently declared Ambani and key group firms as ‘fraudulent borrowers’ in connection with massive loan irregularities.
The action marks one of the most sweeping investigations ever mounted against a member of India’s corporate royalty. And it couldn’t come at a worse time for Ambani, whose Reliance Anil Dhirubhai Ambani Group (RAAGA) has already been navigating a turbulent debt resolution process.
What’s being probed?
The ED’s crackdown comes under the Prevention of Money Laundering Act (PMLA), and it spans a wide network:
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35+ premises searched in Mumbai
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50 companies under scanner, many believed to be RAAGA affiliates
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25+ individuals linked as promoters, consultants, intermediaries
According to ED sources quoted by ANI, the case centers around a well-orchestrated financial scheme involving loan diversion, bribery of bank officials, and manipulation of documents.
Among the most serious allegations: diversion of around ₹3,000 crore from Yes Bank between 2017 and 2019. Investigators say RAAGA firms received favorable loan terms shortly after Yes Bank’s top executives allegedly received payments — raising red flags of quid pro quo.
The chain of events being investigated reportedly includes:
| Timeline | Key Event |
|---|---|
| 2016–2017 | RAAGA companies apply for loans from Yes Bank |
| Early 2017 | Funds allegedly disbursed without due diligence |
| 2017–2019 | Loans diverted via shell firms; repayments defaulted |
| June 2025 | SBI classifies RCom & Anil Ambani as ‘fraud’ |
| July 2025 | ED launches coordinated raids in Mumbai |
The Enforcement Directorate claims that critical Credit Approval Memorandums (CAMs) at Yes Bank were backdated, and large loan disbursals were pushed through without credit analysis — a breach of internal policy and industry norms.
“This was no accident. It was engineered.”
The language from ED officials has been unusually blunt.
“This wasn’t merely bad banking. This was a structured attempt to siphon public money,” said one investigator close to the case. “From shell companies to bribery to false audits — it’s all under review.”
The agency is also examining whether senior Yes Bank executives, including the promoter at the time, were compensated in exchange for favorable approvals.
They’re not alone. Multiple institutions — including the CBI, SEBI, NFRA (National Financial Reporting Authority), and the National Housing Bank — have now shared intelligence with ED as the net tightens.
SBI drops the hammer
On June 13, SBI formally classified Reliance Communications and its promoter, Anil D. Ambani, as “fraud accounts” under RBI’s Master Directions on Fraud Risk Management.
The bank’s exposure to RCom is substantial:
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₹2,227.64 crore in fund-based outstanding
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₹786.52 crore in non-fund-based guarantees
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Total exposure over ₹3,000 crore since 2016
SBI informed the Reserve Bank of India on June 24 and is in the process of lodging a complaint with the CBI.
To make matters worse, the Resolution Professional (RP) of RCom also disclosed the fraud status to stock exchanges on July 1, further intensifying scrutiny from regulators and the public markets.
Reliance Responds (or Doesn’t)
At the time of publishing, there has been no official statement from Anil Ambani or his legal representatives.
Calls to the Reliance Centre in Santa Cruz, one of the primary locations raided, were met with “no comment” from administrative staff. Security around the premises was tightened throughout Thursday, with ED vehicles seen entering and exiting throughout the day.
Fallout in markets
Stocks linked to the Reliance ADAG group — including Reliance Infrastructure and Reliance Power — tumbled sharply, hitting lower circuits by midday Thursday. Though both stocks had shown surprising strength earlier this year (RInfra surged 125% YTD), the new investigation has wiped out recent gains and renewed investor anxieties.
“Investors were betting on a turnaround. This changes everything,” said a Mumbai-based fund manager holding exposure to RInfra debt.
Analysts at brokerage firms say a downgrade on debt papers may follow if the allegations harden into formal charges.
Not Ambani’s first legal storm
While elder brother Mukesh Ambani continues to tower over India’s corporate skyline, Anil Ambani’s journey has been more turbulent. Once one of the richest men in the world, Anil’s fortune has plummeted over the past decade due to overleveraging, failed telecom bets, and legal entanglements.
In 2020, he claimed in court he was nearly bankrupt — a claim that raised eyebrows given his extensive asset portfolio.
Now, the ED’s investigation — alongside likely action from the CBI, RBI, SEBI, and possibly the SFIO — may further complicate any hope of corporate revival.
