Anil Ambani loan fraud case: India probe agency makes first arrest in $2 billion scam

Dubai: Indian financial crime authorities have made their first arrest in a $2 billion bank loan fraud case allegedly involving companies tied to Anil Ambani’s Reliance Group.

According to Economic Times, Partha Sarathi Biswal, MD of Odisha-based Biswal Tradelink Pvt Ltd, was arrested under India’s anti-money laundering law. Authorities say he arranged a forged bank guarantee worth ₹682 million (approx. $8.2 million) on behalf of Reliance Power, a firm under the Anil Dhirubhai Ambani Group (ADAG).

According to investigators, Biswal submitted falsified documents and fake email confirmations to India’s Solar Energy Corporation using a spoofed domain—s-bi.co.in—to mimic the State Bank of India’s official web address.

The Enforcement Directorate (ED), India’s financial crimes agency, said Reliance Power paid Biswal’s company ₹54 million ($660,000) to secure the fake guarantees. His company, incorporated in 2019, is also accused of operating multiple undisclosed bank accounts and using proxy directors.

A special court in New Delhi has remanded Biswal in ED custody until Wednesday.

Ambani under scrutiny

The arrest comes amid widening investigations into ADAG firms. On Friday, authorities issued a Look Out Circular for Anil Ambani, summoning him to appear before the ED on August 5.

Last week, enforcement officers raided 35 premises in Delhi and Mumbai linked to Reliance Group firms and executives. The crackdown spans over 50 companies and 25 individuals, with investigators seizing large volumes of documents, hard drives, and digital evidence.

The probe stems from a 2024 case filed by Delhi Police’s Economic Offences Wing. The ED is now investigating the role of Reliance NU BESS Limited and Maharashtra Energy Generation Limited in the alleged ₹682 million ($8.2 million) fraud.

Company response

In filings to Indian stock exchanges, Reliance Power and Reliance Infrastructure acknowledged the ED raids but said operations and financials remain unaffected.

The ED has contacted India’s internet registry to trace the spoofed domain used in the fraudulent emails, which appeared to originate from the country’s largest public lender, State Bank of India.

With inputs from ANI, IANS