Indian Agency Questions Anil Ambani in $2 Billion Loan Fraud Probe
India’s Enforcement Directorate (ED) interrogated Reliance Group Chairman Anil Ambani for nearly 10 hours on Tuesday in a money laundering investigation tied to alleged bank loan fraud involving his group companies, officials said. The probe centers on financial irregularities exceeding $2 billion.
Ambani, 66, arrived at the ED’s central Delhi office in an electric vehicle around 10:50 a.m. and left shortly before 9 p.m. His statement was recorded under the Prevention of Money Laundering Act, with investigators posing approximately 12 questions, according to agency sources. Ambani denied any wrongdoing, asserting that his companies made timely financial disclosures to regulators and that senior executives made all key financial decisions.
The ED remains unconvinced and may summon Ambani again, sources said. He has requested 10 days to submit documents related to critical financial decisions. The agency issued a Look Out Circular against Ambani, a standard measure in major bank fraud cases, and has also summoned several Reliance Group executives for questioning this week.
The investigation follows ED searches on July 24 at 35 locations involving 50 companies and 25 individuals, including Reliance Group executives, in Mumbai. The probe focuses on alleged loan diversions totaling over $2 billion, primarily through Reliance Infrastructure (R Infra). Key allegations include a $360 million loan from Yes Bank to Reliance Group companies between 2017 and 2019, with suspicions of bribes paid to Yes Bank promoters before the loans were granted. The ED is also examining claims of backdated loan approvals, inadequate due diligence, and loans diverted to shell companies or entities with weak financials, common addresses, and shared directors.
The case stems from reports by the Central Bureau of Investigation, National Housing Bank, Securities and Exchange Board of India (SEBI), National Financial Reporting Authority, and Bank of Baroda, which allege a deliberate scheme to siphon public funds through banks, shareholders, and investors. A SEBI report further claims R Infra funneled funds disguised as inter-corporate deposits through a company, CLE, without disclosing it as a related party to bypass shareholder and audit approvals.
A Reliance Group spokesperson rejected the allegations, noting that claims of a $1.2 billion fund diversion are a decade old and that R Infra’s exposure was $780 million, fully disclosed on February 9, 2025. The spokesperson said a settlement, mediated by a retired Supreme Court judge and filed with the Bombay High Court, ensured full recovery of the $780 million. They added that Ambani has not been on R Infra’s board since March 2022.
The ED is also investigating a $126 million loan fraud case involving Reliance Communications (RCOM) and Canara Bank, as well as undisclosed foreign bank accounts and assets. Additionally, Reliance Mutual Fund’s $340 million investment in high-risk Additional Tier 1 bonds is under scrutiny for potential quid pro quo arrangements.
India’s government recently informed Parliament that the State Bank of India classified RCOM and Ambani as fraudulent, with a complaint pending with the CBI. The ED’s ongoing probe underscores India’s efforts to address financial misconduct amid heightened scrutiny of corporate governance.
