ED raids hit Anil Ambani stocks: Reliance Power, Infra sink 5%

India Today

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Shares of Reliance Power and Reliance Infrastructure fell sharply on Thursday, July 24, following news of Enforcement Directorate (ED) raids linked to a Rs 3,000 crore loan fraud involving companies of the Anil Dhirubhai Ambani Group (ADAG) and Yes Bank.Both stocks dropped over 5% in intraday trade. While Reliance Infrastructure has lost 9.37% in the past five trading sessions, Reliance Power has fallen by 7.41% during the same period. The sudden sell-off came after the ED launched a widespread search operation targeting multiple ADAG-linked entities.According to sources, ED officials carried out searches at more than 35 locations in Mumbai and Delhi. These included around 50 companies and over 25 individuals, all under the scanner for alleged money laundering. The case is being investigated under the Prevention of Money Laundering Act (PMLA) and is based on two FIRs filed earlier by the Central Bureau of Investigation (CBI).Officials familiar with the probe said the agency is looking into the diversion of loans worth nearly Rs 3,000 crore that were sanctioned by Yes Bank between 2017 and 2019. ED suspects a possible bribe-for-loan arrangement, as funds were reportedly transferred to entities linked to the Yes Bank promoters just before the loans were issued to ADAG companies.The investigation has pointed to several violations in the loan approval process. These include backdated credit approval memos, loans issued without proper due diligence, and investments cleared without following Yes Bank's credit policy. In some cases, loans were disbursed on the same day as the application or even before official sanction. Loans were also allegedly routed through shell companies, many of which had shared addresses and directors.The ED's findings are not limited to loan diversion. Inputs from various institutions, including SEBI, National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda, have also helped strengthen the case. SEBI had earlier flagged a sharp rise in corporate loans given out by Reliance Home Finance Ltd (RHFL), another ADAG company. RHFL's loan book jumped from Rs 3,742.60 crore in FY 2017–18 to Rs 8,670.80 crore in FY 2018–19, raising questions about irregularities and process deviations.The ED raids come close on the heels of another major development involving Anil Ambani. The State Bank of India (SBI) recently declared Reliance Communications (RCom) and its promoter Anil D. Ambani as 'fraud'. This decision was taken on June 13, 2025, in line with the Reserve Bank of India's guidelines on fraud risk and SBI's internal policy.Minister of State for Finance Pankaj Chaudhary informed Parliament on Monday as per reports that the bank notified the RBI of this classification on June 24 and is now preparing to file a complaint with the CBI. On July 1, RCom's Resolution Professional informed the Bombay Stock Exchange about the bank's decision, fulfilling the company's regulatory obligations.SBI's total exposure to RCom includes a fund-based loan of Rs 2,227.64 crore, along with interest and other charges since August 2016. Additionally, the bank has a non-fund-based bank guarantee exposure of Rs 786.52 crore. RCom is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. A final ruling from the National Company Law Tribunal (NCLT), Mumbai, is still awaited.SBI has also begun personal insolvency proceedings against Anil Ambani under the same law. The matter is being heard by the NCLT.RELIANCE POWER, INFRASTRUCTURE STATEMENT"It is clarified that Reliance Power and Reliance Infrastructure are a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years," said a statement. advertisement"RHFL has been fully resolved pursuant to the judgment of the Hon'ble Supreme Court of India. Similar allegations as those set out in the media reports are sub-judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information," it further added. "Further, Mr. Anil D. Ambani is not on the Board of Reliance Power and Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power and Reliance Infrastructure," said the firms Reliance Power and Reliance Infrastructure. - EndsMust Watch