Enforcement Directorate Raids Anil Ambani’s Companies and Yes Bank in 3,000 Crore Loan Fraud Probe

New Delhi/Mumbai, July 24, 2025– The Enforcement Directorate (ED) launched extensive raids on Thursday across multiple locations in Delhi and Mumbai, targeting premises linked to industrialist Anil Ambani’s Reliance Anil Ambani Group (RAAGA) companies and Yes Bank. The operation is part of an ongoing investigation into an alleged 3,000 crore loan fraud case involving suspected money laundering and financial irregularities between 2017 and 2019.

According to official sources, the ED conducted searches at over 35 locations, covering approximately 50 companies and more than 25 individuals, under the provisions of the Prevention of Money Laundering Act (PMLA). The raids follow two First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI), which allege large-scale financial misconduct. Inputs from regulatory bodies, including the Securities and Exchange Board of India (SEBI), the National Housing Bank (NHB), the National Financial Reporting Authority (NFRA), and Bank of Baroda, have also aided the probe.

Preliminary investigations point to a “well-planned scheme” to siphon off public funds through fraudulent loans disbursed by Yes Bank to RAAGA companies, particularly Reliance Home Finance Limited (RHFL). The ED has uncovered evidence of systemic lapses, including backdated credit approvals, missing due diligence, and disbursals to entities with weak financials, many of which shared common addresses and directors, raising suspicions of shell companies. A notable surge in RHFL’s corporate loan disbursals—from 3,742 crore in FY18 to 8,670 crore in FY19—has drawn particular scrutiny.

The investigation also explores a potential bribery nexus, with allegations that Yes Bank promoters received funds in their personal accounts prior to loan approvals. Practices such as “loan evergreening”—where new loans were issued to repay existing ones to mask defaults—have further fueled concerns of deliberate manipulation.

The raids come weeks after the State Bank of India (SBI) classified Reliance Communications (RCom), a RAAGA entity under bankruptcy proceedings since June 2019, and its promoter Anil Ambani as “fraud” on June 13, 2025. SBI reported the classification to the Reserve Bank of India (RBI) on June 24, 2025, and is preparing to file a formal complaint with the CBI. The bank’s exposure to RCom includes 2,227.64 crore in fund-based principal outstanding and 786.52 crore in non-fund-based bank guarantees.

The ED’s actions have already impacted the market, with shares of Reliance Infrastructure, another Ambani-linked entity, dropping 4.61% to 361.30 on Tuesday, reflecting investor concerns over the intensifying probe. The investigation is ongoing, with the ED expected to question additional individuals and scrutinize further financial records to unravel the extent of the alleged irregularities.

Neither Anil Ambani nor Yes Bank has issued an official statement regarding the raids. However, the Reliance Group has previously maintained that its loans from Yes Bank were fully secured and transacted in the ordinary course of business. The outcome of the investigation could have significant implications for India’s corporate and banking sectors, as authorities continue to clamp down on financial misconduct.