Anil Ambani under ED radar: Lookout notice issued in ₹30 billion loan fraud case

The Enforcement Directorate has issued a lookout circular against industrialist Anil Ambani amid an ongoing probe into an alleged ₹17,000 crore loan fraud involving his Reliance Group. The move aims to prevent him from leaving the country as investigations intensify.

Anil Ambani has been asked to appear before Enforcement Directorate (ED) officials at their New Delhi headquarters on August 5. The agency is probing possible financial irregularities and violations under the Prevention of Money Laundering Act (PMLA). 

On July 24, the ED conducted extensive searches at 35 premises tied to Anil Ambani’s Reliance Group, covering 50 companies and 25 individuals. The action followed a money laundering case registered after a CBI FIR and involved entities under the RAAGA (Reliance Anil Ambani Group of Associates) umbrella.

The ED said the case is based on inputs from agencies including SEBI, the National Housing Bank, the National Financial Reporting Authority, and Bank of Baroda. According to officials, initial findings reveal a “well-planned scheme to siphon public funds” by misleading banks and investors.

The agency is also investigating a ₹3,000 crore (~$360 million) loan disbursed by Yes Bank between 2017 and 2019. Officials say promoters of the bank received money just before the loans were approved — pointing to a suspected bribery-for-loans nexus. 

The ED highlighted serious violations in loan approvals to RAAGA companies, including: 

SEBI has reportedly flagged a ₹2,850 crore (~$342 million) investment by Reliance Mutual Fund into YES Bank’s AT-1 bonds. These were later written off, raising suspicions of quid pro quo and loss of public money. 

The ED has also found that Reliance Infra routed large sums to group companies through an undisclosed related party called "C Company". This bypassed mandatory shareholder and audit approvals, indicating attempts to avoid regulatory oversight. 

Officials said Reliance Infra has taken a haircut of ₹5,480 crore ($660 million), receiving only ₹4 crore ($480,000) in cash. The rest — settled via non-operational power discoms — has little recovery potential. The total diversion is estimated at ₹10,000 crore (~$1.2 billion). 

The ED stated that Reliance Communications, also promoted by Ambani, is accused of fraudulently defaulting on over ₹14,000 crore ($1.68 billion), with SBI classifying it as a fraudulent account and preparing to approach the CBI.

Additionally, Canara Bank is said to have suffered losses of over ₹1,050 crore ($126 million) due to similar alleged misconduct. 

Officials said the investigation has now expanded to probe undisclosed foreign bank accounts and overseas assets allegedly linked to Ambani and RAAGA companies.