ED grills Anil Ambani in Rs 12,000 crore loan case: What’s next in probe?

New Delhi: Anil Ambani, chairman of the Reliance Group, appeared before the Enforcement Directorate (ED) in New Delhi for questioning in connection with a major money laundering probe under the Prevention of Money Laundering Act (PMLA) on Tuesday.

The case concerns alleged bank loan frauds involving several group companies with a cumulative value exceeding ₹17,000 crore.

Ambani arrived in an electric vehicle around 10:50 am at the ED's central Delhi office, where his statement was recorded. The ED’s action follows extensive searches conducted on July 24 across 35 premises linked to 50 companies and 25 individuals, including executives of the Reliance Group.

Authorities have also issued a Look Out Circular (LOC) against Ambani, and more group executives are expected to be summoned for questioning this week.

One key area of investigation is the alleged diversion of loans worth ₹3,000 crore given by Yes Bank to Ambani’s companies between 2017 and 2019. ED officials suspect the loans were approved without due diligence and that bribes may have been routed to Yes Bank promoters.

Another aspect involves Reliance Infrastructure (R Infra), which allegedly disguised inter-corporate deposits (ICDs) as fund transfers to group firms via a company called CLE, which was not declared as a related party. This allowed the company to bypass shareholder approvals and audit scrutiny.

Reports from the Central Bureau of Investigation (CBI), Securities and Exchange Board of India (SEBI), National Housing Bank, and others have provided supporting evidence of alleged fund diversion, shell companies, and financial misrepresentation.

In a separate case, the ED arrested Partha Sarathi Biswal, managing director of an Odisha-based firm, for issuing a fake bank guarantee of ₹68 crore for a Reliance Group company. Sources suggest that Biswal may be questioned alongside Ambani.

A spokesperson for Reliance Group stated that the allegations are based on a decade-old issue, which had already been disclosed publicly. The company added that it had initiated settlement proceedings to recover the ₹6,500 crore exposure and emphasised that Ambani had not been on the R Infra board since March 2022.

The ED’s ongoing probe also includes examining foreign assets, additional loans from Canara Bank worth ₹1,050 crore, and the investment of ₹2,850 crore in AT-1 bonds by Reliance Mutual Fund. These complex transactions are under scrutiny for possible quid pro quo arrangements and regulatory violations.

Separately, the State Bank of India has reportedly declared RCOM and Ambani as “fraud” accounts and is expected to file a complaint with the CBI. The ED is also probing alleged irregularities related to foreign accounts, AT-1 bond investments worth ₹2,850 crore, and a potential quid pro quo.
What’s next in the probe?

The Enforcement Directorate is expected to summon more senior executives from the Reliance Group in the coming days. Officials may also confront Anil Ambani with documents related to alleged fund diversion and fake guarantees, and cross-question him alongside other accused, including recently arrested individuals. The ED is likely to follow up on financial trails, scrutinise transactions with shell companies, and examine offshore holdings. The investigation could potentially lead to provisional asset attachments or further arrests, depending on the findings.

(With PTI inputs)