ED Cracks Down on Alleged Money Laundering Tied to Reliance Anil Ambani Group

The Enforcement Directorate (ED) has initiated a wide-ranging search operation across multiple locations linked to the Reliance Anil Ambani Group (RAAGA) following allegations of extensive money laundering. Key findings include loan diversions, bribery, and procedural violations concerning Yes Bank, coupled with significant infractions reported by other financial authorities.

The Enforcement Directorate (ED) launched an extensive search operation on Thursday targeting 35 locations, 50 companies, and over 25 individuals associated with alleged money laundering activities by Reliance Anil Ambani Group (RAAGA) companies. This follows an ED investigation triggered by a Central Bureau of Investigation (CBI) FIR, official sources confirmed.

Official reports indicate collaboration with other agencies like the National Housing Bank, SEBI, NFRA, and Bank of Baroda. Preliminary findings suggest a sophisticated scheme for diverting public funds, allegedly involving bribery of Yes Bank officials and misleading shareholders, investors, and public entities, sources told ANI.

The ED's initial investigation identifies an illegal redirection of approximately Rs 3,000 crore in loans from Yes Bank during 2017-2019. Notably, funds were reportedly funneled to Yes Bank promoters just before loan approvals. The agency is examining this alleged bribery-loan nexus.

ED authorities have uncovered significant violations in Yes Bank's loan processes to RAAGA firms, including retroactive Credit Approval Memorandums and insufficient credit assessments, breaching bank policies. Allegedly, these funds were rerouted to affiliated and shell companies, violating loan terms.

Red flags noted by the ED include loans to financially unstable entities, inadequate documentation, shared borrower details, loan recycling, and misrepresented financials. SEBI's findings on RHFL have also been linked to these irregularities.

The ED noted a striking increase in RHFL's corporate loans, from Rs 3,742.60 crore in 2017-18 to Rs 8,670.80 crore in 2018-19. The agency is probing expedited approvals and significant procedural lapses, officials added. (ANI)

(With inputs from agencies.)