In a major development that deepens the financial scrutiny of one of India’s high-profile business figures, the Enforcement Directorate (ED) on Friday issued a lookout circular (LOC) against industrialist Anil Ambani, in connection with a sprawling money-laundering investigation linked to an alleged loan fraud exceeding ₹17,000 crore.
According to officials familiar with the matter, Ambani is now barred from leaving India without prior clearance from the ED’s investigating officer. Any attempt to travel abroad could result in his detention at airports or seaports across the country.
The move comes as part of the ED’s sweeping probe into a network of alleged financial irregularities involving several companies in the Reliance Anil Dhirubhai Ambani Group (ADAG).
Ambani, chairman of the group, has been formally summoned to appear before ED officials at their headquarters in Delhi on August 5, where his statement will be recorded under provisions of the Prevention of Money Laundering Act (PMLA).
Sources further revealed that multiple executives from Ambani’s group companies have also been called in for questioning over the next few days, as the investigation intensifies.
In a statement issued late Friday, Reliance Infrastructure (RInfra) responded to media reports, clarifying that the matter being investigated is over a decade old.
It denied allegations of ₹10,000 crore being diverted to undisclosed related parties and claimed that the actual exposure, as reported in its financial disclosures, is closer to ₹6,500 crore. The company also emphasized that it had voluntarily disclosed the issue publicly on February 9, 2025.
Despite this clarification, sources within the ED pointed to significant red flags. The ongoing probe is centered on the alleged misuse and diversion of loan funds by multiple Reliance Group entities.
Based on findings from regulatory bodies including SEBI, National Housing Bank, Bank of Baroda, and National Financial Reporting Authority (NFRA), the ED suspects that RInfra routed funds—camouflaged as inter-corporate deposits (ICDs)—to other group companies through a shell entity known as CLE.
Crucially, investigators allege that CLE was never disclosed as a related party, an omission that allowed RInfra to bypass necessary shareholder approvals and oversight from audit committees.
Additionally, the ED is examining approximately ₹3,000 crore in loans disbursed by Yes Bank to Ambani’s companies between 2017 and 2019, under what it believes were questionable and potentially illegal circumstances.
Sources allege that Yes Bank promoters received sizeable payments just before these loan disbursements—a timeline that is now under scrutiny to determine any possible quid pro quo or kickbacks.
Further irregularities reportedly include:
- Back-dated loan approvals,
- Absence of due diligence and credit risk analysis,
- Loans issued to financially unsound firms,
- Entities sharing common addresses and directors, suggesting the use of proxy companies to divert funds.
The ED’s case is anchored in two FIRs filed by the Central Bureau of Investigation (CBI) and several reports submitted by India’s top financial regulatory agencies.
Notably, the Union government recently informed Parliament that State Bank of India (SBI) has officially classified Reliance Communications (RCom)—another key entity in the Ambani Group—as involved in a fraudulent case and is preparing to lodge a formal complaint with the CBI.
Similarly, a loan fraud amounting to ₹1,050 crore involving Canara Bank and RCom is also under investigation. ED sources additionally flagged concerns over unreported foreign bank accounts and offshore assets potentially linked to Ambani and his firms.
Interestingly, Reliance Infrastructure’s statement noted that Anil Ambani has not been on its board since March 2022, seemingly to distance him from the company’s operational decisions over the past three years.
However, officials suggest that the leadership vacuum is part of the probe, which aims to uncover the actual channels of financial control and decision-making within the group.
With investigations spanning 50 companies, 35 premises, and 25 individuals, including senior executives from the ADAG network, the ED’s July 24 search operation—spanning three days—is being viewed as one of the agency’s largest coordinated financial enforcement actions in recent years.
As the probe widens, it appears that the spotlight on corporate governance, regulatory compliance, and personal accountability in India’s corporate sector is set to intensify.
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