ED conducts searches at more than 35 premises linked to Anil Ambani: ‘Well-planned scheme to siphon off public money’
The Enforcement Directorate (ED) conducted large-scale raids on Thursday at over 35 premises linked to businessman Anil Ambani and his companies. The searches targeted corporate offices, residences, and facilities tied to the Reliance Anil Dhirubhai Ambani Group (RAAGA). The agency suspects a money-laundering scheme involving public funds worth more than ₹3,000 crore.
SBI Fraud Tag Sparks Action
The investigation began after State Bank of India (SBI) marked loans to Reliance Communications and other RAAGA entities as “fraudulent.” Forensic audits and reports from regulators supported this classification. Following this, the Central Bureau of Investigation (CBI) filed FIRs. The ED stepped in under the Prevention of Money Laundering Act (PMLA) to track the alleged diversion of funds.
Officials believe the loans, issued between 2017 and 2019, were moved through shell companies to disguise their origin. Investigators claim these transfers aimed to bypass regulatory checks while benefiting RAAGA-linked entities and individuals.
Scheme to Divert Public Money
The ED calls the operation a “well-planned scheme” designed to siphon public funds. Evidence shows that loans from Yes Bank were approved despite weak financial indicators. Investigators suspect that bribes were offered to Yes Bank officials and promoters for favorable approvals.
Reports also highlight irregularities such as backdated approvals and manipulated loan documents. Officials say these practices show an intent to deceive financial institutions.
Scale of Raids
The ED deployed teams across Mumbai, Delhi, and other cities to raid 35+ premises. More than 50 companies and 25 key individuals are under investigation. Seized documents and digital records are being examined for evidence of illegal transfers.
Regulatory bodies, including SEBI, NFRA, and the Reserve Bank of India, are coordinating with the ED. Auditors and intermediaries connected to the group are also being probed for their roles in the transactions.
Stock Market Reaction
The raids sent shockwaves through the stock market. Reliance Infrastructure and Reliance Power shares fell by nearly 4% on Thursday. Analysts say this development could prolong the financial troubles of the group.
Anil Ambani’s companies have faced financial distress for years. Reliance Communications, once a telecom leader, filed for bankruptcy in 2019 due to mounting debt and competition. Since then, Ambani’s group has faced lawsuits, defaults, and disputes with lenders.
ED’s Corporate Fraud Focus
The ED has intensified its fight against corporate fraud in recent years. Many high-profile cases have exposed loan diversion and shell company misuse. This case appears to follow a similar pattern, with public-sector banks and investors as primary victims.
Officials believe this is not a case of mere mismanagement. “We are looking at a deliberate attempt to misuse public funds. The evidence points to a chain of planned actions to mislead banks and investors,” said an ED officer.
What Comes Next?
The ED will now analyze seized documents and electronic data. Key executives and directors of RAAGA companies are likely to receive summons in the coming days. Investigators aim to trace how the ₹3,000 crore moved through shell firms and identify all beneficiaries.
Legal experts say proving money laundering will depend on tracing each financial transaction. “If the ED links the diverted funds to illegal gains or bribes, the case will become very strong,” noted a senior legal analyst.
Anil Ambani Yet to Respond
Anil Ambani and his representatives have not commented on the raids. In past cases, Ambani has denied financial wrongdoing and blamed adverse market conditions for his companies’ struggles. The current investigation, however, could intensify legal and regulatory pressure on him.
Impact on Public Trust
The case has sparked renewed debate on corporate governance and lending practices. Experts argue that weak due diligence and political influence often lead to large-scale losses for banks. “This case shows how systemic gaps allow big borrowers to misuse public money,” a financial consultant explained.
If proven, the scheme will highlight the urgent need for stricter loan approval processes and tighter oversight by regulators.
Conclusion
The ED’s raids on Anil Ambani-linked locations mark a turning point in India’s fight against corporate financial crimes. With over ₹3,000 crore under the scanner, the investigation could reshape the conversation on accountability in the corporate sector. For now, all eyes are on the ED’s findings and the possible legal fallout for one of India’s most prominent industrialists.
