The Enforcement Directorate (ED) on Thursday conducted raids at multiple locations in connection with a loan fraud case worth over ₹3,000 crore involving Anil Ambani’s group of companies and Yes Bank, officials said.
ED sources told ANI that over 35 premises, 50 companies and over 25 persons are covered in a search operation launched today by the ED under section 17 of the Prevention of Money Laundering Act (PMLA).
The central agency is probing a suspected nexus of bribe and loan.
Preliminary investigation reveals alleged illegal loan diversion of around ₹3,000 crore from Yes Bank between 2017 and 2019. The ED has found that just before the loan was granted, the promoters of Yes Bank allegedly received funds in their personal accounts.
The raids follow SBI's move to label the loan account of Reliance Communications (RCom) as "fraud" and report former promoter Anil Ambani to the RBI. RCom has been under bankruptcy since June 2019.
Subsequent to the recording of FIRs by the CBI, the ED started investigating the alleged offence of money laundering by RAAGA Companies (Reliance Anil Ambani Group Companies), ED sources said.
Other agencies and institutions also shared information with the ED, such as the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, they added.
Preliminary investigation by the ED has revealed a well-planned and thought-after scheme to divert or siphon off public money by cheating banks, shareholders, investors, and other public institutions.
The offence of bribing bank officials, including the promoter of Yes Bank Limited, is also under scanner, sources said.
According to the agency, there were gross violations in the loan approval process to Reliance Anil Ambani Group (RAAGA) companies. These include: Back-dating of Credit Approval Memorandums (CAMs), Investment proposals made without proper due diligence or credit analysis and Multiple violations of Yes Bank’s own credit policy.
Officials said, these findings point to what officials describe as systemic lapses and deliberate manipulation to favour the borrower. The investigation continues under the PMLA.