Loan 'fraud': ED summons Reliance Group chairman Anil Ambani on August 5

The Enforcement Directorate has summoned Reliance Group chairman Anil Ambani on August 5 for questioning in connection with an alleged Rs 3,000 crore bank loan fraud-linked money-laundering scam.

Earlier on July 24, the probe agency had carried out a massive search operation spanning over 50 companies and more than 25 individuals linked to the case.

According to a senior probe agency official, the money-laundering probe stems from FIRs registered by the Central Bureau of Investigation (CBI) and also information shared by other institutions like the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda.

According to ED, the investigation has uncovered a well-planned scheme involving illegal diversion of public money through fraudulent means, allegedly involving cheating of banks, shareholders, investors and other financial institutions.

The agency is also probing allegations of bribery involving officials of Yes Bank, including its promoter.

Preliminary findings suggest that loans amounting to approximately Rs 3,000 crore were illegally diverted from Yes Bank between 2017 and 2019.

The ED has found that just before these loans were sanctioned, entities linked to Yes Bank promoters received significant financial transfers, raising concerns of a quid pro quo arrangement.

“Gross violations have been identified in the loan approval process. Credit Approval Memorandums (CAMs) were allegedly backdated, and investments were proposed without any due diligence, in clear violation of the bank’s credit policy,” the officer said.

As per the officer, SEBI has shared its observations with ED regarding Reliance Home Finance Ltd (RHFL), where the agency has flagged a dramatic surge in corporate loans—from Rs 3,742.60 crore in FY 2017-18 to Rs 8,670.80 crore in FY 2018-19.

“We are examining irregularities including expedited loan approvals and process deviations,” the officer said.

Meanwhile, on July 24 when the ED conducted raids, Reliance Power and Reliance Infrastructure, two companies of the group, informed the stock exchange saying while they acknowledge the action, the raids had “absolutely no impact” on their business operations, financial performance, shareholders, employees, or any other stakeholders.

The Reliance Power and Reliance Infrastructure, had also earlier in separate statements, clarified that they were separate and independent listed entities with no business or financial linkage to RCOM or RHFL.