New Delhi/Mumbai | August 5, 2025: Reliance Group chairman Anil Ambani appeared before the Enforcement Directorate (ED) today for questioning in connection with a major bank loan fraud case involving Rs. 17,000 crore, sources confirmed.
The financial probe agency had issued summons to Mr Ambani on August 1, following multi-day raids across Mumbai and Delhi targeting businesses and associates linked to the Reliance Group. The searches were part of an ongoing investigation under the Prevention of Money Laundering Act (PMLA), 2002, and involved nearly 50 companies and 25 individuals, including top executives from Ambani’s firms. Over 25 people were questioned.
Focus of the Investigation
According to ED sources, the investigation stems from two FIRs filed by the Central Bureau of Investigation (CBI). The key allegation involves the diversion of Rs. 3,000 crore in loans from Yes Bank to Ambani’s group firms between 2017 and 2019. A broader fraud of over Rs. 14,000 crore has been linked to Reliance Communications Ltd, bringing the total suspected fraud amount to approximately Rs. 17,000 crore.
The ED has written to 12-13 public and private sector banks, including State Bank of India (SBI), ICICI Bank, Axis Bank, HDFC Bank, UCO Bank, and Punjab and Sind Bank, seeking documentation related to loans extended to companies such as Reliance Housing Finance, Reliance Communications, and Reliance Commercial Finance.
Investigators found multiple red flags during the probe:
- Loans granted to firms with unverified or weak financials
- Common directors and addresses across borrower companies
- Missing or incomplete documentation in sanction files
- Funds allegedly routed through shell entities
- Cases of loan evergreening, where new loans were used to repay old ones
- Bribes allegedly paid to Yes Bank promoters before loan approvals
Arrest and Fake Guarantees
On August 1, the ED made its first arrest in the case. Partha Sarathi Biswal, MD of Biswal Tradelink Pvt Ltd, was taken into custody for submitting fake guarantees worth Rs. 68.2 crore, reportedly on behalf of Reliance Power. Investigators believe these documents were part of a larger fraudulent scheme.
Lookout Circular Issued Against Ambani
As the probe deepens, the ED has also issued a Lookout Circular (LOC) against Anil Ambani to prevent any attempt to leave the country.
Raids and Corporate Response
The ED’s searches, conducted from July 24 for three days, recovered documents, computer peripherals, and digital records from offices and residences connected to the Reliance Group. Despite the raids, Reliance Power and Reliance Infrastructure released a joint statement on July 26, saying that the ED’s action had “no impact” on their operations, employees, or financial performance.
This isn’t the first time Ambani’s companies have faced scrutiny. In November 2020, SBI declared Reliance Communications (RCom) and Mr Ambani’s accounts as fraudulent, subsequently filing a complaint with the CBI in January 2021. However, the Delhi High Court issued a status quo order the following day, prompting a withdrawal of the complaint.
What’s Next?
Sources suggest that the ED is now closely examining the loan approval process, possible bribery links, and whether there was any political or corporate shielding. Anil Ambani’s appearance before the ED marks a key development in one of the most high-profile corporate fraud investigations in recent years.
As the probe unfolds, further arrests and disclosures are expected. The case raises significant concerns about banking oversight, corporate governance, and financial accountability in India’s private sector.
