ED Conducts Raids in Alleged Money Laundering Case

The Enforcement Directorate (ED) has launched simultaneous raids across Mumbai in connection with a suspected money laundering case involving a bank loan fraud worth Rs 3,000 crore against companies owned by Reliance Group chairman Anil Ambani. Over 35 locations were searched, targeting 50 companies and 25 individuals under the Prevention of Money Laundering Act (PMLA).

Companies Issue Clarifications

In response to the raids, Reliance Power and Reliance Infrastructure have issued statements to the stock exchanges. Reliance Power emphasized that the raids have no impact on its business operations or stakeholders, stating that the allegations pertain to other entities within the Reliance Group that are either undergoing insolvency or have been resolved.

Investigation Details

The ED is investigating the alleged improper diversion of loans granted by Yes Bank to Ambani's group companies between 2017 and 2019. Sources reveal that the probe includes examining connections between payments received by Yes Bank promoters and loan approvals, as well as breaches in loan approval processes.

Broader Implications

The investigation draws on findings from multiple agencies, suggesting a systematic effort to misappropriate public funds. The case highlights significant irregularities in loan documentation, due diligence, and the use of shell companies.