In a significant development in India's banking and financial investigations, the Enforcement Directorate (ED) on Wednesday launched search operations across more than 35 locations in Mumbai and Delhi, targeting companies linked to Anil Ambani’s Reliance Group and Yes Bank, in connection with a suspected bank loan fraud case.

The raids are being carried out under the Prevention of Money Laundering Act (PMLA), 2002, with the agency focusing on alleged irregularities involving the sanctioning and utilisation of large corporate loans.

According to sources within the investigation team, the action involves more than 50 companies and about 25 individuals allegedly connected through a network of transactions and fund diversions.

Massive Loan Exposure Under Scanner

The investigation stems from a broader probe into loan defaults and alleged fund siphoning that have taken place over the last decade. Several Anil Ambani-led companies had reportedly taken loans from Yes Bank, which later turned into non-performing assets (NPAs), causing heavy losses to the banking system.

These include entities from sectors like infrastructure, telecom, and financial services, which received funding from Yes Bank during the leadership of its former MD & CEO, Rana Kapoor.

The total exposure under scrutiny is estimated to be ₹12,800 crore, with the ED alleging that a significant portion of these loans was either diverted or routed through shell entities, in violation of banking and financial regulations.

Simultaneous Raids Across Mumbai and Delhi

On July 24, 2025, ED teams launched coordinated raids at over 35 premises, including corporate offices, residential locations of top executives, and intermediary firms in Mumbai’s Bandra Kurla Complex, Andheri, Nariman Point and parts of South Delhi.

The raids targeted not only the Reliance Group companies directly linked to Anil Ambani but also other entities suspected to be part of a larger web of proxy firms and financiers.

Officials confirmed that digital evidence, financial documents, loan files, and emails have been seized from several locations. Forensic teams have been deployed to analyse electronic data and trace fund movements.

ED Focused on Money Trail

The ED’s focus remains on unearthing the actual end-use of sanctioned funds, which in several cases, allegedly did not match the project reports or business plans submitted to banks.

The agency suspects that a part of the funds were diverted abroad through hawala channels or invested in benami assets. Some shell companies are believed to have been used to layer funds and conceal the identity of ultimate beneficiaries.

An officer associated with the probe told media, “We are looking into a coordinated attempt to defraud the banking system using structured transactions. This involves multiple layers of companies and cross-holdings.”

Links to Yes Bank Probe

This fresh action comes as an extension of the ongoing investigation against Yes Bank, whose former CEO Rana Kapoor was arrested earlier in connection with bribes and quid pro quo loan sanctions.

The ED suspects that several corporate houses, including the Anil Ambani group, benefited from preferential treatment in loan approvals, and in return, paid kickbacks disguised as investments in dubious financial instruments.

Some of the loans were allegedly sanctioned even when borrowers were already under financial stress, raising concerns about collusion between senior bank officials and corporate borrowers.

No Immediate Response from Reliance Group

As of now, Anil Ambani or his company spokespersons have not issued an official statement in response to the ED action. In past statements, the Reliance Group has denied any wrongdoing and maintained that all financial transactions were in accordance with the law.

However, legal experts suggest that if the allegations hold, top executives could face arrest, and the companies could be subjected to heavy financial penalties or asset seizures under Indian financial crime statutes.

Political and Market Implications

The ED raids come at a time when the Indian government has ramped up its crackdown on non-performing assets (NPAs) and corporate defaulters, especially those involving public and private sector banks.

The case has triggered renewed political debate, with opposition parties alleging selective targeting of industrialists, while the government maintains it is a part of its commitment to cleaning up India’s financial ecosystem.

Stock market analysts are watching closely for any fallout. Although Reliance Group’s listed entities are no longer major players compared to their pre-2010 peak, any regulatory crackdown may affect investor confidence in similar legacy conglomerates.

What Next?

The ED will likely summon senior executives from the implicated companies for questioning. Bank records, credit committee approvals, emails between bankers and company officials, and transaction trail analyses will form a crucial part of the investigation.

Sources indicate that the Finance Ministry and RBI have been kept in the loop regarding the developments, and further coordination with CBI and Income Tax Department is expected if criminal conspiracy or tax evasion angles emerge.

As India continues its pursuit of corporate accountability, the Anil Ambani group–Yes Bank investigation is shaping up to be one of the biggest financial fraud cases in recent years, potentially unravelling a complex web of loan misuse, shell companies, and systemic lapses in banking oversight.

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