Loan Fraud Probe: ED Raids 50 Firms, Summons Anil Ambani, Issues LOC

The Enforcement Directorate (ED) has issued a Lookout Circular (LOC) against industrialist Anil Ambani amid an ongoing investigation into alleged financial irregularities and loan frauds involving multiple companies under the Reliance Anil Dhirubhai Ambani Group. Ambani has also been summoned to appear before the ED in Delhi on August 5 under the Prevention of Money Laundering Act (PMLA).

A senior ED official confirmed the development, stating, "We have issued a LOC against Anil Ambani and summoned him for questioning on August 5 regarding the ongoing loan fraud investigation." The move is aimed at preventing Ambani from leaving the country while inquiries are underway.

According to officials, the agency last week conducted searches at premises linked to 50 companies and 25 individuals, including top executives from the Reliance Group. The probe relates to alleged loan diversions and financial misconduct estimated to exceed ₹17,000 crore. One of the central entities under scrutiny is Reliance Infrastructure (R Infra), accused of siphoning funds disguised as inter-corporate deposits (ICDs) to other group firms via a company named CLE.

Sources said that R Infra did not disclose CLE as a related party entity, thereby evading mandatory shareholder and audit committee approvals. The investigation stems from findings highlighted in a Securities and Exchange Board of India (SEBI) report.

Responding to the allegations, a Reliance Group spokesperson stated that the claim of ₹10,000 crore fund diversion pertained to a matter over a decade old. The company clarified that its actual financial exposure was ₹6,500 crore, which had been transparently disclosed in its financial filings dated February 9, 2025.

"Through court-mandated mediation, overseen by a retired Supreme Court judge, Reliance Infrastructure reached a settlement to recover 100% of its ₹6,500 crore exposure. This mediation award has already been submitted before the Hon'ble Bombay High Court," the spokesperson said. The company also emphasized that Anil Ambani has not held any position on the Board of Reliance Infrastructure since March 2022.

The ED is also separately investigating ₹3,000 crore in loans allegedly diverted by Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Ltd (RCFL) between 2017 and 2019, loans that were extended by Yes Bank. Officials claimed that money was transferred to the accounts of Yes Bank's promoters shortly before the disbursements.

In a related crackdown, the ED on Friday raided an Odisha-based company accused of issuing fake bank guarantees worth ₹68 crore to several business groups, including one of the Reliance firms.

On the fake guarantee allegations, the Reliance Group issued a statement asserting that the company and its subsidiaries were "acting in good faith" and had fallen victim to a "fraudulent conspiracy involving cheating, forgery, and fraud." The company also confirmed it had disclosed the matter to the stock exchanges on November 7, 2024.

The ED's investigation is ongoing and is expected to expand as more details surface from the documents and digital evidence collected during recent raids.