The Enforcement Directorate (ED) on Thursday carried out massive raids across 35 locations as part of a money laundering investigation involving the Reliance Anil Dhirubhai Ambani Group (RAAGA) companies. The agency is probing alleged financial irregularities involving over ₹3,000 crore in diverted loans.
The searches, conducted across 50 companies and over 25 individuals, stem from a First Information Report (FIR) earlier registered by the Central Bureau of Investigation (CBI). Other regulatory bodies—including the Securities and Exchange Board of India (SEBI), the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda—also shared intelligence inputs that supported ED’s case.
According to ED officials, the preliminary investigation revealed a “well-planned and deliberate scheme” to siphon off public funds through loan fraud, involving cheating of banks, investors, and financial institutions. Bribery of bank officials, including promoters of Yes Bank, is also under the scanner.
The ED highlighted that between 2017 and 2019, loans worth approximately ₹3,000 crore were disbursed by Yes Bank to RAAGA companies, with evidence of bribes being paid to Yes Bank promoters just prior to loan sanctions.
Officials said that internal processes were grossly violated. “Credit Approval Memorandums (CAMs) were backdated, investments were proposed without proper due diligence, and credit analysis norms were bypassed in clear violation of Yes Bank’s credit policy,” sources stated.
The investigation has revealed that loans were further routed to shell companies and other group entities in violation of loan conditions. Key red flags identified by ED include:
- Loans to companies with weak financials
- Common addresses and directors among borrower entities
- No documentation or due diligence
- Evergreening of group company loans
- Loans disbursed on or before the application date
- Misrepresentation of financial records
SEBI’s findings regarding Reliance Home Finance Ltd (RHFL), one of the group’s key subsidiaries, have also been shared with ED. Officials pointed to a dramatic rise in RHFL’s corporate loans from ₹3,742 crore in FY18 to ₹8,670 crore in FY19, which is now under scrutiny for potential irregularities and procedural lapses.
The probe remains ongoing, with further action expected in the coming weeks as the agency deepens its financial forensic investigation.
