The Enforcement Directorate (ED) on Thursday carried out raids at several locations in Mumbai connected to industrialist Anil Ambani’s business interests. The searches come just days after the State Bank of India (SBI) officially classified Reliance Communications (RCom) and its promoter-director Anil D Ambani as ‘fraud’.
Although Ambani’s personal residence was not part of the operation, ED teams from both Delhi and Mumbai searched properties linked to his group companies. The raids are part of an ongoing investigation into alleged money laundering involving firms under the Reliance Anil Ambani Group (RAAGA). The ED’s investigation is reportedly based on information shared by a range of financial and regulatory authorities, including the National Housing Bank, the Securities and Exchange Board of India (SEBI), the National Financial Reporting Authority (NFRA), Bank of Baroda, and two FIRs registered by the Central Bureau of Investigation (CBI).
Several top executives associated with Ambani’s firms are also under scrutiny. Investigators believe a deliberate scheme may have been executed to mislead or defraud public stakeholders—ranging from investors and banks to shareholders and financial institutions—by diverting public funds.
Yes Bank loans under the lens
At the heart of the investigation is the suspected diversion of approximately ₹3,000 crore in loans obtained from Yes Bank between 2017 and 2019. Officials allege that large sums were routed to entities tied to the bank’s promoters, shortly before the funds were formally disbursed to companies in the Ambani group.
Authorities have also flagged financial irregularities in Reliance Home Finance Ltd (RHFL), noting a suspicious spike in corporate loan disbursements. The company reportedly issued loans worth ₹3,742.60 crore in FY 2017–18, which jumped sharply to ₹8,670.80 crore in FY 2018–19. A possible bribery connection involving former Yes Bank promoters is also under investigation.
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SBI tags Anil Ambani, RCom as ‘fraud’
The ED’s action follows SBI’s recent decision to label Anil Ambani and RCom as ‘fraudulent’ entities under the Reserve Bank of India’s fraud risk management guidelines. On June 13, 2025, SBI made the classification in accordance with its internal policy. The bank subsequently reported the matter to the RBI on June 24.
Pankaj Chaudhary, the state minister of finance, informed the Lok Sabha that SBI is currently working on submitting a formal complaint to the CBI. In accordance with the company's disclosure requirements, RCom's Resolution Professional notified the Bombay Stock Exchange (BSE) of the fraud designation on July 1.
SBI’s financial exposure to Reliance Communications is substantial. It includes ₹2,227.64 crore in fund-based loans, along with interest and other dues pending since August 26, 2016. In addition, the bank holds non-fund-based exposure in the form of bank guarantees amounting to ₹786.52 crore.
RCom is already undergoing resolution under the Corporate Insolvency Resolution Process (CIRP), as per the Insolvency and Bankruptcy Code, 2016. A resolution plan approved by the Committee of Creditors was submitted to the National Company Law Tribunal (NCLT), Mumbai, on March 6, 2020. However, a final verdict from the NCLT remains pending. Separately, SBI has also initiated personal insolvency proceedings against Anil Ambani under the same law. That matter, too, is being heard by the NCLT in Mumbai.
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