ED Raids Anil Ambani’s Reliance Group in Rs 3,000 Crore Money Laundering Case Linked to Yes Bank Loans
Date of Incident: July 24, 2025
Location: Mumbai & Delhi, India
Introduction
The Enforcement Directorate (ED), India’s top financial investigation agency, conducted widespread raids across multiple premises linked to Anil Ambani’s Reliance Anil Dhirubhai Ambani Group (RAAGA) on July 24, 2025. The action, stemming from allegations of money laundering and bank fraud, targeted over 50 entities and individuals associated with the group. The investigation is centered on suspicious loan disbursements totaling over Rs 3,000 crore from Yes Bank between 2017 and 2019.
Scope of the Raids
The ED carried out searches at over 35 locations in Mumbai and Delhi, covering:
- Corporate offices of Reliance Power, Reliance Infrastructure, and other RAAGA subsidiaries
- Residences of top executives and auditors
- Offices of related shell companies allegedly used for routing the funds
These raids are part of a broader investigation under the Prevention of Money Laundering Act (PMLA).
Allegations and Investigative Background
The origin of the probe lies in:
- Two FIRs filed by the CBI against RAAGA-linked firms
- Red flags raised by regulatory bodies including SEBI, SBI, NHB, NFRA, and Bank of Baroda
- Evidence of bribery, backdated loan approvals, and circular financing uncovered in forensic audits
Key Allegations:
- Loans of over Rs 3,000 crore were granted to RAAGA firms with minimal due diligence
- Funds were allegedly diverted via shell entities
- Bribes were reportedly paid to Yes Bank officials to expedite approvals
- Loan evergreening: new loans were used to pay off old obligations, violating banking norms
Market Reaction and Company Response
Following the news of the ED action:
- Shares of Reliance Power and Reliance Infrastructure hit lower circuits, falling by 4–5%
- Market cap erosion led to concerns among retail investors and mutual funds
In response, both companies issued statements:
- Reliance Infrastructure Ltd: “We are fully cooperating with the authorities and have always maintained the highest standards of corporate governance.”
- Reliance Power Ltd: “Our operations remain unaffected. We believe the ongoing probe will clarify all concerns raised.”
Regulatory & Financial Timeline
| Year | Event |
|---|---|
| 2017–2019 | Yes Bank disburses large loans to RAAGA firms |
| 2019 | SEBI begins investigating insider trading and misreporting |
| 2020 | Anil Ambani declares bankruptcy in a UK court |
| 2022 | RAAGA firms face insolvency and restructuring bids |
| 2025 | ED initiates money laundering probe based on CBI and SEBI inputs |
Legal Implications & Future Action
The ED is currently:
- Summoning senior RAAGA executives for questioning
- Examining IT, tax filings, and internal communications
- Tracing ultimate beneficiaries of the fund movement
If charges are proved, possible consequences include:
- Attachment of properties and accounts
- Prosecution of officials and board members
- Bans on stock market participation or holding director roles
Broader Impact on Business Ecosystem
- Investors: Growing concerns over governance in large conglomerates
- Banking Sector: Reinforces need for stricter credit evaluation and risk mitigation
- Corporate Governance: Highlights SEBI’s enhanced role in overseeing high-risk lending patterns
- Public Sentiment: Calls for stronger penalties against financial fraud
Conclusion
The ED raids on Anil Ambani’s business empire signal a tightening noose around corporate corruption and bank fraud in India. With more regulatory bodies stepping up oversight, the case could redefine how legacy corporate groups approach financial discipline. As investigations proceed, the unfolding events will be watched closely by stakeholders across India’s financial ecosystem.
Suggested By: Gujju Traders LLP