PTI New Delhi
The Enforcement Directorate (ED) on Tuesday questioned Reliance Group Chairman Anil Ambani for around 10 hours in a money laundering case linked to alleged multiple bank loan fraud cases worth crores of rupees against his group companies.
The businessman reached the office of the probe agency in central Delhi in an e-vehicle around 10.50 am and made an exit shortly before 9 pm.
The statement of the 66-year-old businessman has been recorded under the Prevention of Money Laundering Act (PMLA), official sources said. He was asked about a dozen questions about loan transactions, they said.
It is understood that Ambani denied any wrongdoing and said his companies have made timely disclosures about their financial health to regulators. He is also stated to have told investigators that all financial decisions were taken by senior executives of the companies concerned.
The ED investigators are, however, not convinced, and he may be summoned again, the sources said.
Ambani has also sought about seven days to furnish some supporting documents to the ED related to key financial decisions taken, they said.
The summons came after the agency conducted searches at 35 premises of 50 companies and 25 people, including executives of his business group, in Mumbai on July 24.
The ED has notified a look out circular (LOC), as per standard operating procedure in large bank ‘fraud’ cases, against Ambani even as some executives of his group have also been summoned to appear for questioning during the week as part of this probe.
The action pertains to alleged financial irregularities and collective loan “diversion” pegged at more than Rs 17,000 crore by multiple group companies of Ambani, including Reliance Infrastructure (R Infra).
The first allegation pertains to “illegal” loan diversion of around Rs 3,000 crore, given by Yes Bank to the group companies of Ambani between 2017 and 2019.
The ED suspects that just before the loan was granted, Yes Bank promoters “received” money in their companies, according to the sources. 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, according to the sources.
The money laundering case stems from at least two CBI FIRs and reports shared by the National Housing Bank, SEBI, National Financial Reporting Authority, and Bank of Baroda with the ED, they had said.
These reports, the sources said, indicate 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 other allegation being probed by the ED, on the basis of a SEBI report, is 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.
A Reliance Group spokesperson had denied any wrongdoing and said in a statement that the allegation regarding the 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, the statement said.
