The Enforcement Directorate (ED) has issued a Lookout Circular (LOC) against Anil Ambani, chairman of the Reliance Group, in connection with an alleged ₹17,000 crore loan fraud and money laundering case. Ambani has been barred from leaving the country and has been summoned to appear before the ED headquarters in Delhi on August 5.
What Is the Case About?
The ED’s investigation revolves around:
- Alleged loan diversion and financial irregularities involving multiple Reliance Group companies
- A suspected ₹10,000 crore diversion by Reliance Infrastructure (R Infra) through a firm named CLE Pvt Ltd, which was not disclosed as a related party
- A separate ₹3,000 crore loan granted by Yes Bank to Ambani’s group companies between 2017 and 2019
The probe is being conducted under the Prevention of Money Laundering Act (PMLA) and is based on findings from SEBI, CBI, and other regulatory bodies.
ED Raids and Evidence Collection
- Last week, the ED conducted raids at over 35 locations linked to Reliance Group entities across Mumbai and Delhi
- Investigators seized documents, hard drives, and digital records from offices and residences of senior executives
- SEBI’s report alleges that R Infra camouflaged fund transfers as legitimate business transactions and withheld crucial disclosures
Legal and Corporate Fallout
- Anil Ambani is no longer on the boards of Reliance Infrastructure or Reliance Power
- Reliance Group has denied wrongdoing, stating that the ₹6,500 crore exposure was disclosed in financial statements and a settlement was reached through mediation
- The ED is also investigating a fake bank guarantee racket involving a forged ₹68.2 crore guarantee submitted to the Solar Energy Corporation of India (SECI)
