Financial Probe Unveils Loan Scheme Allegations Against Anil Ambani's Reliance Group

India's financial crime-fighting agency has searched 35 locations linked to the Reliance Anil Ambani Group as part of an investigation into alleged money laundering and public fund siphoning. The agency alleges that the group orchestrated a scheme to divert ₹30 billion in loans from YES Bank to shell companies.

In a widening investigation into alleged financial misdeeds, India's financial crime agency has conducted searches at 35 locations associated with the Reliance Anil Ambani Group. According to confidential government sources, the agency accuses the group of a 'well-planned' scheme involving the misuse of ₹30 billion in loans from YES Bank.

These loans, reportedly extended to numerous shell companies between 2017 and 2019, are believed to involve payments to YES Bank officials, violating lending processes. The allegations also include gross violations of YES Bank's loan approval procedures—a scenario involving weak financial standing of borrowing firms and efforts to 'evergreen' loans to mask non-performing assets.

Anil Ambani's group, while refuting the charges as misrepresentations, insists that the loans followed due process and were fully secured. Meanwhile, past financial challenges have seen several of Ambani's enterprises declare bankruptcy, leading to YES Bank's insolvency rescue in 2020 and recent strategic interest from Japan's Sumitomo Mitsui Banking Corp.

(With inputs from agencies.)