Yes Bank loan diversion under ED scanner; SBI declares Reliance Communications a ‘fraud’ account, initiates insolvency proceedings
New Delhi/Mumbai (Economy India): The Enforcement Directorate (ED) launched a sweeping operation on Thursday, conducting raids at over 35 premises linked to businessman Anil Ambani and his companies, in connection with a Rs3,000 crore loan fraud case involving Yes Bank. The case revolves around the alleged diversion of bank funds through a complex web of shell companies and fraudulent documentation.
The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), covering business offices, residential premises, and shell entities associated with Reliance Communications (RCom) and other companies of the Anil Dhirubhai Ambani Group (ADAG). The ED has reportedly targeted around 50 companies and 25–30 individuals in this investigation.
🔍 What Is the Case About?
Between 2017 and 2019, Anil Ambani’s group companies secured loans worth ₹3,000 crore from Yes Bank. Investigators believe that the sanctioned loans were systematically diverted to shell companies and other group entities in violation of loan covenants.
Preliminary findings by ED point to:
- Backdated loan approval documents,
- Violation of internal bank processes, and
- Alleged bribery of Yes Bank officials for fast-tracking approvals.
The ED has also seized digital records, transaction trails, and internal memos as part of its forensic audit into the group’s financial dealings.
🏦 SBI Declares RCom Account as ‘Fraud’
In a parallel development, State Bank of India (SBI), the largest lender to Reliance Communications, declared the loan account of RCom and Anil Ambani as fraudulent under RBI’s Master Directions on Fraud Classification.
According to SBI:
- RCom’s outstanding liabilities include Rs2,227.64 crore in fund-based loans and Rs786.52 crore in non-fund-based exposure.
- The bank filed a detailed report to the Reserve Bank of India (RBI) on 24 June 2025.
- SBI is now preparing to register a formal complaint with the Central Bureau of Investigation (CBI).
Furthermore, SBI has initiated personal insolvency proceedings against Anil Ambani, seeking recovery of dues through the National Company Law Tribunal (NCLT).
📉 Stock Market Reaction
Following the news of ED raids, shares of Anil Ambani-led companies witnessed sharp declines:
- Reliance Infrastructure fell by nearly 4% on the BSE.
- Reliance Power also dropped by over 3.5% during intraday trading.
Investors remained cautious amid uncertainty over the potential legal and financial ramifications for the group.
⚖️ Wider Investigation and Agencies Involved
Apart from ED and SBI, the case has drawn attention from several regulatory bodies including:
- Central Bureau of Investigation (CBI)
- Securities and Exchange Board of India (SEBI)
- National Housing Bank (NHB)
- National Financial Reporting Authority (NFRA)
- Bank of Baroda, another lender to RCom
Sources indicate that this may just be the beginning of a multi-agency crackdown on financial fraud involving public sector banks.
📊 Quick Facts Table
| Key Aspect | Details |
|---|---|
| ED Raids | Over 35 locations in Mumbai, Delhi |
| Loan Amount | ₹3,000 crore |
| Lenders Involved | Yes Bank, SBI, BoB |
| Fraudulent Entity | Reliance Communications (RCom) |
| Legal Status | SBI declared fraud, ED probe ongoing |
| Stock Impact | Reliance Infra and Power down 3–4% |
🧾 ED’s Position
The ED is treating the matter as a “well-orchestrated scheme” to siphon off public funds, stating that large-scale financial irregularities were committed under the guise of legitimate corporate borrowing.
Officials believe this case may uncover deeper issues in the banking system’s exposure to failing telecom and infrastructure companies.
🧩 What Happens Next?
- SBI is expected to file an FIR with CBI shortly.
- ED may summon key executives for questioning and attach properties if evidence substantiates fund diversion.
- If proven, the case could lead to criminal prosecution, attachment of assets, and bar on future financing to the Anil Ambani Group.
This high-profile case puts Anil Ambani’s business empire under intense scrutiny once again. As India’s financial institutions double down on tackling loan fraud and banking irregularities, this could serve as a precedent-setting moment in enforcing accountability among large corporate borrowers.
(Economy India)
