The Enforcement Directorate (ED) has taken significant action by attaching 40 properties, collectively valued at around ₹3,000 crore, connected to the Anil Ambani-led Reliance Group. This move is part of a broader investigation into alleged money laundering activities. Among the seized assets are notable properties including the Ambani family’s residence in Pali Hill, Mumbai, and the prominent Reliance Centre located on Maharaja Ranjeet Singh Marg in New Delhi.
The ED’s operation extends beyond these key locations, with multiple other assets across various cities like Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, and Chennai being attached under the Prevention of Money Laundering Act (PMLA). These attached assets encompass a range of property types, including commercial office spaces, residential units, and land parcels, bringing the total value of the attached properties to approximately ₹3,084 crore.
While the company has not yet issued a formal statement regarding the ED’s action, the investigation is focused on the alleged diversion and laundering of public funds that were raised by Reliance Home Finance Ltd. (RHFL) and Reliance Commercial Finance Ltd. (RCFL). Reports indicate that between 2017 and 2019, Yes Bank invested substantial amounts in RHFL and RCFL instruments, which subsequently became non-performing investments by December 2019.
The ED’s findings suggest a complex financial route where investments, initially intended for public funds, were allegedly channeled indirectly through Yes Bank. This indirect routing ultimately led the funds to companies associated with the Anil Ambani Group. The investigation highlights potential violations of SEBI’s (Securities and Exchange Board of India) guidelines concerning mutual fund conflict of interest frameworks, which typically prohibit direct investment by mutual funds into group financial companies.
Further details from the investigation reveal that funds were allegedly moved through Yes Bank’s exposure to RHFL and RCFL, which in turn extended loans to entities linked to the Reliance Anil Ambani Group. The ED’s fund-tracing efforts reportedly uncovered a diversion of these funds to group-linked entities, ultimately leading to their alleged siphoning off. Corporate loans, specifically General Purpose Corporate Loans, are said to have found their way into the accounts of Reliance group companies. The ED has pointed out significant control failures in the loan disbursement process, with allegations of rapid processing, approval, and even disbursement preceding loan applications, often without adequate prudential checks.
Additionally, the ED has noted instances where funds were advanced before the loan application was even finalized, suggesting irregularities such as waived field investigations and blank or overwritten documents. The agency also found that many borrowers involved had weak financial standings or minimal operations, with inadequate or unregistered security provisions. These alleged intentional and consistent control failures are a key focus of the ED’s ongoing investigation.
The agency has also intensified its scrutiny into loan fraud cases involving Reliance Communications Ltd. (RCOM) and its associated companies. The ED has reported that these companies allegedly diverted over ₹13,600 crore for evergreening loans, routed over ₹12,600 crore to connected parties, and invested more than ₹1,800 crore in fixed deposits and mutual funds, much of which was then liquidated and rerouted to group entities. The misuse of bill discounting facilities to funnel funds to connected parties has also been identified. The ED continues its efforts to trace the proceeds of crime and secure further property attachments, with the ultimate aim of benefiting the general public through these recoveries.