New Delhi, July 24, 2025: The Enforcement Directorate (ED) has uncovered a massive financial scandal involving top officials of Yes Bank and business tycoon Anil Ambani, with loans worth around ₹3,000 crore allegedly sanctioned without proper scrutiny. According to ED findings, senior executives at the bank cleared loans to companies led by Anil Ambani between 2017 and 2019, bypassing standard due diligence processes after allegedly receiving bribes.
Sources familiar with the investigation revealed that the agency has unearthed an “illegal quid pro quo arrangement,” where Yes Bank promoters were allegedly paid through privately held concerns shortly before these loans were sanctioned. The ED has described the loan approval process as being riddled with “serious violations.”
Alarming Findings in the Probe
- Credit Approval Memorandums were backdated, and investments were pushed forward without any due diligence or proper credit analysis.
- Funds from sanctioned loans were allegedly routed to shell companies and other group entities in clear violation of loan agreements.
- In several instances, loans were disbursed even before formal sanction, or on the same day as the application, suggesting pre-arranged decisions.
- Red flags included borrower companies with poor financials, common addresses and directors, lack of proper documentation, and evergreening of corporate loans to cover up existing liabilities.
The central agency has intensified its money laundering investigation and launched a massive search operation across more than 35 locations linked to the firms and individuals involved. Over 50 companies have been searched, and more than 25 individuals have been questioned so far.
Inputs From Multiple Regulatory Bodies
The ED’s investigation is primarily based on two FIRs filed by the Central Bureau of Investigation (CBI) alleging large-scale financial irregularities and misappropriation of loan funds. The probe has also been supported by inputs from various key institutions, including:
- National Housing Bank
- Securities and Exchange Board of India (SEBI)
- National Financial Reporting Authority (NFRA)
- Bank of Baroda
According to ED sources, a “calculated scheme” was devised to defraud banks, investors, shareholders, and public institutions by misusing sanctioned loan amounts. The scale and complexity of the financial irregularities suggest a deeper network of complicity involving multiple stakeholders in the banking and corporate ecosystem.
Probe Likely to Expand
Officials have indicated that the investigation is far from over. Given the scale of the alleged wrongdoing and the trail of financial misconduct, the probe is expected to widen further in the coming weeks. The ED is likely to summon more individuals and may also scrutinize other financial institutions that had exposure to these firms.
Anil Ambani’s office has not issued an official response to the latest developments at the time of publication.
The revelations mark yet another blow to India’s banking sector, highlighting ongoing concerns over the misuse of public funds, weak internal controls, and the need for stricter regulatory oversight in high-value loan approvals.
