Last week, ED had carried out searches across 35 locations in Mumbai linked to Anil Ambani’s Reliance Group, covering 50 companies and 25 individuals, under the Prevention of Money Laundering Act (PMLA). Anil Ambani was summoned to appear at the ED headquarters in the national capital on August 5
Anil Ambani has been summoned to appear before the ED on August 5. File Pic
A Look Out Circular (LOC) was on Friday reportedly issued against Anil Dhirubhai Ambani Group (ADAG) Chairman Anil Ambani, on the request of the Enforcement Directorate (ED), in connection with an alleged Rs 17,000-crore loan fraud case, reported the IANS.
Earlier, Anil Ambani was summoned to appear at the ED headquarters in the national capital on August 5, according to officials familiar with the matter.
According to the sources, the agency will record his statement under the Prevention of Money Laundering Act (PMLA) once he deposes, the PTI reported.
Some executives of Ambani's group companies have been also been summoned over the next few days.
The summons come after the federal agency conducted searches at 35 premises of 50 companies and 25 people, including executives of his business group, last week. The searches, launched on July 24, went on for three days.
The action pertains to alleged financial irregularities and collective loan "diversion" pegged at more than Rs 17,000 crore by multiple group companies of Anil Ambani, including Reliance Infrastructure (R Infra), according to the PTI.
The agency found, on the basis of a Sebi report, that R Infra "diverted" funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company named CLE. It is alleged that R Infra did not disclose CLE as its "related party" to avoid approvals from shareholders and audit panels.
According to the PTI, a Reliance Group spokesperson said in a statement that the allegation regarding alleged diversion of Rs 10,000 crore to an undisclosed party was a 10-year-old matter and the company had stated in its financial statements that its exposure was only around Rs 6,500 crore. Reliance Infrastructure had publicly disclosed this matter on February 9, 2025, nearly six months ago.
"Through mandatory mediation proceedings conducted by a retired Supreme Court judge and the mediation award filed before the Hon'ble Bombay High Court, Reliance Infrastructure arrived at a settlement to recover its 100 per cent exposure of Rs 6,500 crore," it said, as per the PTI.
The company added that Ambani was not on the board of R Infra since more than three years (March 2022).
The ED is also looking at allegations of "illegal" loan diversion of around Rs 3,000 crore, given by Yes Bank to the group companies of Ambani between 2017-2019.
The ED, the sources said, has found that just before the loan was granted, Yes Bank, promoters "received" money in their concerns.
The agency is investigating this nexus of "bribe" and the loan.
The sources said the ED is also probing allegations of "gross violations" in Yes Bank loan approvals to these companies, including charges such as back-dated credit approval memorandums and investments proposed without any due diligence/credit analysis in violation of the bank's credit policy.
The loans are alleged to have been "diverted" to many group companies and "shell" (bogus) companies by the entities involved.
The agency is also looking at some instances of loans given to entities with weak financials, a lack of proper documentation of loans and due diligence, borrowers having common addresses and common directors in their companies, etc., the sources said, reported the PTI.
The money laundering case stems from at least two CBI FIRs and reports shared by National Housing Bank, SEBI, National Financial Reporting Authority and Bank of Baroda with the ED, they had said, as per the PTI.
These reports, the sources said, indicate that there was a "well-planned and thought after scheme" to divert or siphon off public money by cheating banks, shareholders, investors and other public institutions.
The Union government had informed Parliament recently that State Bank of India has classified RCOM along with Ambani as "fraud" and was also in the process of lodging a complaint with the CBI.
A bank loan "fraud" of more than Rs 1,050 crore between RCOM and Canara Bank is also under the ED scanner, apart from some "undisclosed" foreign bank accounts and assets, the sources said.
Reliance Mutual Fund is also stated to have invested Rs 2,850 crore in AT-1 bonds, and a "quid pro quo" is suspected here by the agency.
Additional Tier 1 (AT-1) are perpetual bonds issued by banks to increase their capital base, and they are riskier than traditional bonds, having higher interest rates.
(with IANS and PTI inputs)
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