Anil Ambani Seeks 7 Days to Submit Documents in Rs 17,000 Crore Loan Fraud Probe

Industrialist Anil Ambani has requested seven days to furnish key documents and details sought by the Enforcement Directorate (ED) in connection with a massive ₹17,000-crore loan fraud case under investigation. The request came after nearly nine hours of questioning at the ED headquarters on Monday.

According to reports, Ambani assured full cooperation during the probe, which is being conducted under the provisions of the Prevention of Money Laundering Act (PMLA). “Anil Ambani’s statement was recorded today. Various questions regarding loan transactions were posed to him. He has sought a week’s time to provide the necessary documents,” ED said.

The 66-year-old businessman arrived at the ED office in Delhi around 11 am and was questioned until 8 pm. This marks the first time he has appeared before the agency in this matter. His questioning comes nearly two weeks after the ED conducted large-scale raids on 35 locations, involving 50 companies and over 25 individuals linked to Reliance Anil Dhirubhai Ambani Group (RAAGA), as part of the probe.

The investigation stems from a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) and inputs from several institutions including the Securities and Exchange Board of India (SEBI), the National Housing Bank, the National Financial Reporting Authority (NFRA), and the Bank of Baroda.

Earlier, a Look Out Circular (LOC) was also issued against Ambani to prevent potential flight risk.

Preliminary findings by the ED point towards a systematic effort to divert and siphon off public funds through fraudulent means. Authorities say the case involves bribery of bank officials, including promoters of Yes Bank, and the illegal diversion of approximately ₹3,000 crore in loans disbursed between 2017 and 2019.

The ED claims that Yes Bank extended loans to RAAGA companies with serious procedural lapses—such as backdated credit approval memos, absence of credit analysis, and violations of internal lending policies. These loans were allegedly redirected to shell entities and other group companies in violation of terms.

Some red flags noted by ED include lending to financially weak entities, absence of due diligence, common addresses and directors among borrowers, and suspected evergreening of loans. Loans were often disbursed on the same day they were applied for or even prior to approval.

The agency is also probing whether Reliance Home Finance Ltd (RHFL) and Reliance Communications Ltd (RCom) were involved in similar financial irregularities. Officials claim that RHFL witnessed a dramatic rise in corporate loans—from ₹3,742.60 crore in FY 2017-18 to ₹8,670.80 crore in FY 2018-19—raising concerns about the approval process and internal controls.

Meanwhile, RCom has reportedly defaulted on loans worth over ₹14,000 crore. According to sources, the State Bank of India (SBI) has classified RCom and Anil Ambani as "fraudulent borrowers" under RBI guidelines and is preparing to lodge a complaint with the CBI. Canara Bank too, officials said, suffered losses of over ₹1,050 crore due to alleged fraud by RCom.

Investigators are also looking into alleged undisclosed foreign assets linked to Ambani and his companies. In another revelation, ED stated that Reliance Mutual Fund invested ₹2,850 crore in AT-1 bonds of Yes Bank under suspicious circumstances. These investments were allegedly a quid pro quo and eventually resulted in massive losses when the bonds were written down.

Further, ED has flagged concerns about large inter-corporate deposits (ICDs) routed through an undisclosed related-party company—referred to as "C Company"—by Reliance Infrastructure (R Infra). Authorities claim R Infra did not disclose this company in its related party disclosures, potentially to bypass shareholder and audit oversight.

One alarming finding includes R Infra settling dues worth ₹6,499 crore by transferring assets and economic rights in non-operational power distribution companies (discoms), raising doubts about the possibility of recovery. The agency estimates the overall loan diversion in this case could exceed ₹10,000 crore.

In response to the allegations, Reliance Infrastructure issued a statement earlier this year, clarifying that the matter relates to historical transactions and that its exposure was limited to around ₹6,500 crore. The company said it had already disclosed the matter in its financial reports and had secured a settlement through court-supervised mediation to recover the full amount.

The statement also noted that Anil Ambani has not held any position on Reliance Infrastructure’s board since March 2022.

Also Read: SBI Flags Fund Misuse by Reliance Communication, Anil Ambani Named