₹17,000 crore loan fraud: Anil Amban appears before ED today, lawyer not permitted

New Delhi: Reliance Group Chairman Anil Ambani travelled to New Delhi on Tuesday to appear before the Enforcement Directorate (ED) in connection with a major money laundering investigation tied to an alleged Rs 17,000 crore bank loan fraud involving several of his group companies.

The 66-year-old industrialist is scheduled to present himself at the ED headquarters in the capital, where his statement will be recorded under the Prevention of Money Laundering Act (PMLA).

According to an NDTV report, Ambani will not be permitted to have legal counsel present during his questioning, and the entire session will be recorded on video.

Raids, summons and expanding probe

Ambani’s summons, issued on August 1, followed an extensive three-day crackdown launched by the ED on July 24. The operation targeted 35 locations in Delhi and Mumbai linked to nearly 50 companies and 25 individuals — including top executives from the Reliance Group.

The ED has also issued a Look Out Circular (LOC) against Ambani to prevent any attempt to leave the country while investigations are ongoing.

Alleged diversion of loans and inter-corporate transactions

The core of the ED’s investigation focuses on allegations that loans worth over Rs 17,000 crore were fraudulently diverted by multiple firms under Mr Ambani’s control — particularly Reliance Infrastructure (R Infra). The agency is examining whether funds were misused under the guise of inter-corporate deposits (ICDs).

Citing findings from a Securities and Exchange Board of India (SEBI) report, the ED alleges that R Infra funnelled money to other Reliance Group entities via a company called CLE. Crucially, CLE was not disclosed as a “related party”, which investigators believe was a deliberate attempt to bypass shareholder and audit committee approvals.

Bank scrutiny widens

In addition to previously reported outreach to 12–13 banks, the ED has now written to as many as 39 banks, questioning their due diligence procedures. The agency is scrutinising why these institutions failed to red-flag suspicious transactions, particularly when repayment defaults began surfacing.

"The silence of the banks even after loan defaults raises serious questions. These institutions had a legal duty to alert the authorities, which they failed to do,” a senior official told India Today TV.

Banks contacted reportedly include major public and private lenders such as State Bank of India, ICICI Bank, HDFC Bank, Axis Bank, UCO Bank, and Punjab and Sind Bank.

First arrest made in the case

On August 1, the ED made its first arrest in connection with the case. Partha Sarathi Biswal, Managing Director of Biswal Tradelink Pvt Ltd, was taken into custody for allegedly arranging fake bank guarantees worth Rs 68.2 crore on behalf of Reliance Power. He has been charged under the PMLA.

Focus on Yes Bank nexus

As per previous reports, preliminary findings show that between 2017 and 2019, Yes Bank loans totalling Rs 3,000 crore were extended to group firms linked to Ambani, some of which were allegedly diverted. Investigators are also probing whether Yes Bank promoters received payments through linked entities shortly before loan disbursals — raising suspicions of a potential quid pro quo or bribery arrangement.

Multiple concerns identified

The ED’s probe has flagged several concerning patterns:

• Loans issued to companies with weak or unverifiable financial standing
• Common directors and addresses across borrowing firms
• Missing or incomplete documentation
• Routing of funds through suspected shell companies
• “Loan evergreening” — where new loans were granted to repay older ones

Reliance Group's response

In a stock exchange filing on July 26, Reliance Power and Reliance Infrastructure acknowledged the ED’s actions but said the raids had “absolutely no impact” on their business operations, financial performance, or stakeholders.

Past allegations revisited

This is not the first time Ambani’s companies have faced scrutiny. In November 2020, the State Bank of India declared Reliance Communications (RCom) and Ambani’s account as fraudulent and filed a complaint with the CBI in January 2021. However, a Delhi High Court status quo order led to the complaint’s withdrawal.

As the investigation deepens, Mr Ambani’s statement to the ED could prove critical in determining whether charges will be formally pursued. The matter is being closely watched, given its potential implications for India’s corporate and banking sectors.