The Enforcement Directorate (ED) has launched a detailed investigation into a major loan fraud case involving ₹17,000 crore linked to companies owned by businessman Anil Ambani. An important point in the investigation is why 39 banks failed to report or act on the fraud, even after the loans had turned into non-performing assets (NPAs). The ED suspects that this silence may not have been accidental and there is suspicion that bribes were paid to bank officials to suppress the matter.
The Enforcement Directorate (ED) conducted raids at more than 35 locations and over 50 companies connected to Anil Ambani’s Reliance Group, also known as RAAGA companies.
According to the ED, one bank – Yes Bank, gave loans of about ₹3,000 crore between 2017 and 2019 to certain companies. But instead of using the money for business purposes, a large portion of it was allegedly diverted to shell companies (firms that exist on paper but have no real operations) and other related entities. A big question of bribery has been raised over officials of YES Bank. As per reports, Top officials of Yes Bank cleared loans of around Rs 3,000 crore to companies helmed by Anil Ambani without due diligence.
The agency has formally questioned the banks, asking for explanations regarding their inaction, particularly at the time when the loans showed signs of default. This raises serious concerns about the integrity of internal checks and oversight mechanisms within the banking system, especially in public sector banks where transparency and accountability are crucial.
As part of the ongoing money laundering investigation, the ED has summoned Anil Ambani to appear before it on August 5. Along with him, the ED has also called in his close associates and senior executives, such as Amitabh Jhunjhunwala and Satish Seth, believing they could provide key details about how the fraud was carried out and whether any illegal payments or bribes were made to bank officials.
Recently, SBI Labelled Reliance Communications and Anil Ambani as ‘Fraud’. The State Bank of India (SBI) has officially declared Reliance Communications (RCom) and its promoter director Anil D. Ambani as ‘fraudulent entities’.
This case not only points to large-scale financial misconduct but also raises serious concerns about possible collusion or negligence by the banks involved, which failed to report or act on the irregularities when the loans became suspicious. More details will be released soon.
