In a rapidly developing financial probe, the Enforcement Directorate (ED) on Thursday escalated its investigation into alleged loan fraud involving companies tied to industrialist Anil Ambani, targeting the Reliance Anil Dhirubhai Ambani Group (RADAG).
The central agency conducted raids at 35 locations associated with the group, setting off a fresh round of scrutiny into corporate governance and financial compliance.
The action came in the wake of the State Bank of India (SBI) officially classifying Reliance Communications (RCOM)—a former flagship telecom company under Ambani’s control—as a “fraud account”.
In its report dated June 23, 2025, SBI formally notified Reliance Communications of this classification and informed the Reserve Bank of India (RBI) about alleged irregularities in the company’s financial conduct. The move has further complicated Anil Ambani’s already strained business legacy.
In response to the intensifying media coverage and stakeholder concerns, Reliance Power, a separate publicly listed entity under the RADAG umbrella, issued a clarification to the stock exchanges and the public.
The company categorically asserted that the ongoing ED probe and enforcement actions will have “absolutely no impact” on its core business operations, financial health, or governance structure.
“Reliance Power is a separate and independent listed entity with no business or financial linkage to Reliance Communications (RCOM) or Reliance Home Finance Ltd (RHFL),” the company stated.
To further distance itself from the controversy, the statement noted that RCOM has been undergoing Corporate Insolvency Resolution Proceedings (CIRP) under the Insolvency and Bankruptcy Code, 2016, for more than six years. Similarly, RHFL has already been “fully resolved”, under a verdict delivered by the Supreme Court of India, the statement added.
Anil Ambani’s Role Clarified
Reliance Power also clarified that Anil D. Ambani is not a member of its Board of Directors, underscoring that “any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power.”
The company assured shareholders, regulators, and the public that it remains focused on executing its business plans and continues to work towards “creating sustainable value for all stakeholders.”
ED’s Allegations: Loan Diversion, Fraudulent CAMs, and Bribes
According to ED sources quoted by PTI, the investigation centers around the alleged diversion of ₹3,000 crore in loans granted to RADAG entities by Yes Bank between 2017 and 2019.
The ED is exploring whether this loan approval process was linked to a bribery-for-loans nexus, with claims that Yes Bank promoters had received funds into their accounts just before loan disbursals, suggesting a potential kickback arrangement.
Investigators believe that internal protocols and due diligence were systematically bypassed. Allegations include:
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Back-dated Credit Approval Memorandums (CAMs)
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Investments proposed without proper credit risk analysis
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Violations of Yes Bank’s internal credit policies