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Hans India
6 days ago
- Business
- Hans India
Reliance Infra, Power hit lower circuit; drop 10 pc after ED raids on Anil Ambani firms
Mumbai: After the Enforcement Directorate (ED) raided multiple premises linked to industrialist Anil Ambani, shares of Reliance Infrastructure and Reliance Power dropped 10 per cent over two sessions, hitting their lower circuits of 5 per cent on Friday. ED conducted the raid on over 35 premises linked to Anil Ambani's Reliance Group (RAAGA Companies) during a probe into the Rs 3,000 crore Yes Bank loan fraud. Both Reliance Power and Reliance Infrastructure have issued statements distancing themselves from the investigation, saying the ED's actions mainly relate to Reliance Communications and Reliance Home Finance -- companies no longer associated with them. Reliance Power fell 5 per cent to Rs 56.72, while Reliance Infrastructure slid 5 per cent to Rs 341.85, upon which it was locked in the lower circuit. On July 23, 2024 the Reliance Infrastructure shares were trading at Rs 384 in the mid day session, since then the shares have fell sharply, now touching Rs 341.85. In the trading sessions following the raids, Reliance infrastructure shares were locked in a 5 per cent lower circuit two times. They were locked at Rs 360.05 on July 24, and today at Rs 341.85 were sealed once again. Reliance Power shares also dropped significantly, falling 7.41 per cent over the same period. Preliminary investigation by ED has revealed a well-planned and thought-out scheme to divert or siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials, including Promoter of Yes Bank Limited, is also under the scanner. Allegedly, the promoters colluded for an unalwful loan diversion of around Rs 3,000 crore from Yes Bank (from 2017 to 2019). The regulator has found gross violations in Yes Bank loan approvals to RAAGA companies, such as Credit Approval Memorandums (CAMs) being backdated and investments being proposed without any due diligence/ credit analysis in violation of the bank's credit policy.
Mint
6 days ago
- Business
- Mint
Anil Ambani's Reliance Group breaks silence on ED raids, says ‘transactions involving Yes Bank…'
Anil Ambani's Reliance Group issued an official clarification regarding the allegations which has appeared in recent media reports and the actions initiated by India's Enforcement Directorate (ED) on Thursday, 24 July 2025. 'Reliance Group wishes to clarify certain recent media reports concerning the actions initiated by an enforcement agency. These reports appear to pertain to allegations in relation to transactions involving Yes Bank and Reliance Home Finance, which are more than 8 years old,' said the company in a white paper release. Also Read | Reliance Power, Reliance Infra deny financial impact of ED action ED Raid The Enforcement Directorate (ED) on Thursday conducted simultaneous searches at more than 35 premises across Mumbai and Delhi, as part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA). According to media reports, ED conducted the raids on Thursday in connection with an alleged ₹3,000-crore bank loan fraud involving Anil Dhirubhai Ambani Group companies and Yes Bank. The reports also mentioned that the investigation on Thursday was conducted across 50 companies and 25 individuals. Anil Ambani is the former managing director and chairman of the Reliance Group of companies, as of current date, Thursday, 24 July 2025. Also Read | Anil Ambani group stocks hit 5% lower circuit after ED raids at his properties Here's what Reliance Group says 1. Loan Allegations: On the allegation, ED found out that just before the ₹3,000 crore loan was granted, Yes Bank promoters received money in their concerns. The company now claims that the loans sanctioned to 'certain private companies' of the promoter, Yes Bank, were 'sanctioned on merit.' They also said that the loans were 'fully secured and have been fully repaid', including the interest, making the outstanding amount nil. 'Loans extended by Reliance Home Finance Limited (RHFL) to certain private companies of the promoter of Yes Bank were sanctioned on merit, after following the due process, and were duly approved by a credit committee comprising more than 30 individuals. These loans were fully secured and have been fully repaid, including interest, and the outstanding is zero,' said the company. 2. Loan Approval Violations: ED alleged that it found gross violations in Yes Bank loan approvals to Reliance Group firms. They reportedly found that there were backdated Credit Approval Memorandums (CAMs), proposed investments without due diligence in violation of the bank's credit policies. The company refuted the claims and said that the loans were granted after 'due process' and the entire Reliance Group companies' exposure was 'fully secured.' 'Yes Bank had granted loans to Reliance entities after following the due process. The entire exposure of Reliance Group companies is fully secured and was undertaken strictly in the ordinary course of business. All transactions between Reliance Group companies and Yes Bank have been carried out in complete compliance with applicable laws, regulations, and financial norms,' said Reliance Group. Also Read | ED raids Mumbai properties linked to Anil Ambani | Full details here 3. SEBI Findings: Reports also emerged on the capital markets regulator (SEBI) finding a 'dramatic increase' in corporate loans by Reliance Home Finance Limited (RHFL). As per the allegations, the loans rose from ₹3,742.60 crore in FY2017-18 to ₹8,670.80 crore in FY2018-19. Anil Ambani's Reliance Group said that the allegations were addressed in a SEBI order passed in August 2024, which was later challenged in the Securities Appellate Tribunal (SAT), and still remains under judicial consideration. 'Allegations similar to those referred to in the media reports were addressed in an order passed by SEBI in August 2024. This order has been challenged and is currently pending adjudication before the Hon'ble Securities Appellate Tribunal (SAT). The matter is thus sub judice,' said the company. 'The debt resolution process of Reliance Home Finance led by Bank of Baroda stands resolved pursuant to the judgment of the Hon'ble Supreme Court of India dated March 2023,' said Anil Ambani's Reliance Group. The company also said that Reliance Communications and Reliance Home Finance are not part of the Reliance Group. 'RCOM and RHFL are not part of the Reliance Group,' they said, as per the white paper. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of the individual parties, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
7 days ago
- Business
- Mint
ED raids multiple Mumbai properties linked to Anil Ambani, says ‘well-planned scheme to siphon off public money'
The Enforcement Directorate on Thursday, 24 July, raided several premises in Mumbai linked to Anil Ambani, days after SBI declared him a 'fraud' account holder. Around 35 premises, 50 companies, and over 25 individuals are being searched under the Prevention of Money Laundering Act (PMLA). ANI reported quoting ED sources, 'Subsequent to recording of FIRs by CBI, ED started investigating the alleged offence of Money Laundering by RAAGA Companies (Reliance Anil Ambani Group Companies). Other agencies & institutions also shared information with ED, such as - The National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), Bank of Baroda.' 'Preliminary investigation by ED has revealed a well-planned and thought-out scheme to divert/ siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials, including Promoter of Yes Banks Limited, is also under scanner.' 'Probe also reveals alleged illegal loan diversion of around ₹ 3000 crore from Yes Bank (period 2017 to 2019). ED has found that just before the loan was granted, the Yes Bank promoters allegedly received money in their accounts. ED is investigating this nexus of bribe and loan. ED has found gross violations in Yes Bank loan approvals to RAAGA companies, such as Credit Approval Memorandums (CAMs) were back-dated, Investments were proposed without any due diligence/ credit analysis in violation of Bank's Credit Policy, inter alia.' 'In this regard, over 35 premises, 50 companies and over 25 persons are covered in a search operation launched today by the ED under section 17 of the Prevention of Money Laundering Act,' sources further said. Meanwhile, the State Bank of India has classified Reliance Communications and promoter director Anil D Ambani as 'fraud' and is also in the process of lodging a complaint with CBI, Parliament was informed on Monday, as reported by PTI. Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha that the entities were classified as fraud on 13 June 2025, in accordance with the RBI's Master Directions on Fraud Risk Management and the Bank's Board-approved Policy on Classification, Reporting & Management of Frauds. 'On 24 June 2025, the bank reported classification of fraud to RBI, and is also in the process of lodging a complaint with CBI,' he said. Further, on 1 July, 2025, as part of disclosure compliance, Resolution Professional of RCom informed the Bombay Stock Exchange regarding fraud classification by the bank. He said SBI's credit exposure in RCom includes fund-based principal outstanding of ₹ 2,227.64 crore, along with accrued interest and expenses with effect from 26 August 2016, and non-fund-based Bank Guarantee of ₹ 786.52 crore.
India Today
7 days ago
- Business
- India Today
Loan, lies and bribery? Why Anil Ambani is facing ED heat
The Enforcement Directorate (ED) has launched search operations at over 35 premises linked to companies and executives associated with Anil Ambani's Reliance Group in connection with a suspected Rs 3,000 crore loan fraud and money laundering operation, which is being carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), follows two FIRs registered by the Central Bureau of Investigation (CBI) — RC2242022A0002 and complaints relate to allegations of loan diversion, bribery, and cheating of public institutions by RAAGA companies, a reference to entities within the Reliance Anil Ambani to sources, multiple agencies, including the National Housing Bank, the Securities and Exchange Board of India (Sebi), the National Financial Reporting Authority (NFRA), and Bank of Baroda shared findings and inputs that contributed to the FINDINGS: LOAN DIVERSION AND SHELL COMPANIESA preliminary probe by the ED suggests that companies linked to Anil Ambani engaged in a carefully designed scheme to divert public funds and mislead financial institutions. This reportedly involved illegal diversion of loans worth around Rs 3,000 crore from Yes Bank between 2017 and say that just before the loan disbursements, money was received by concerns linked to the promoters of Yes Bank. This has raised questions of possible bribery and quid-pro-quo arrangements between bank officials and borrower firms. The ED is now investigating the alleged nexus between Yes Bank promoters and Anil Ambani-linked violations in Yes Bank's loan approvals were flagged. Sources in the ED said that back-dated Credit Approval Memorandums (CAMs), investments made without due diligence or credit analysis, and decisions taken in violation of the bank's own credit policy are among the irregularities several cases, loans were disbursed even before formal sanction, and amounts were passed on the same day as applications were made. Some firms that received funds reportedly had weak financial profiles, shared common addresses and directors, and lacked proper documentation, raising red flags around shell companies and HOME FINANCE LIMITED UNDER THE LENSOne of the key entities under ED's scanner is Reliance Home Finance Ltd (RHFL).Sebi is learnt to have shared its findings with ED after observing a dramatic jump in corporate loans disbursed by RHFL, from Rs 3,742.60 crore in FY 2017–18 to Rs 8,670.80 crore in FY 2018–19. The ED is examining whether this spike was connected to the larger loan diversion and expedited approvals, process violations, and onward lending to related parties have also been highlighted as part of the investigation into FOLLOWS SBI'S FRAUD DECLARATIONThe ED's search operation comes just days after State Bank of India (SBI) formally declared Reliance Communications (RCom) and its promoter Anil D Ambani as 'fraud' under Reserve Bank of India (RBI) guidelines. The bank has since reported the fraud to the RBI and is preparing to lodge a complaint with the exposure to RCom includes Rs 2,227.64 crore in fund-based loans and another Rs 786.52 crore in bank guarantees. The company is undergoing insolvency proceedings and a final decision is awaited from the National Company Law Tribunal (NCLT).Finance Minister of State Pankaj Chaudhary recently informed Parliament that SBI has also initiated personal insolvency proceedings against Anil Ambani under the Insolvency and Bankruptcy ED's action on Thursday covered over 35 premises, spanned more than 50 companies, and involved questioning of over 25 individuals linked to the case. The raids are taking place in Mumbai and Delhi, and include offices and establishments related to Anil Ambani's business operations, although his personal residence has not been searched so far.- Ends advertisement
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Business Standard
7 days ago
- Business
- Business Standard
ED raids Anil Ambani-linked firms over suspected ₹3,000 cr loan fraud
The Enforcement Directorate (ED) on Thursday raided over 35 premises and initiated searches on around 50 companies and more than 25 individuals linked to Reliance Anil Ambani Group Companies (RAAGA). The action pertains to the alleged diversion of loans worth about ₹3,000 crore from Yes Bank between 2017 and 2019, sources told Business Standard. The sources further said that other agencies and institutions had also shared information with the ED, including the National Housing Bank, Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda. 'Preliminary investigation by ED has revealed a well-planned and thought-after scheme to divert or siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials, including the promoter of Yes Bank Ltd, is also under scanner,' said ED sources. The source added that the investigation has revealed illegal loan diversion of around ₹3,000 crore from Yes Bank during 2017–19. The ED found that just before the loan was granted, the Yes Bank promoters received money in their concerns. The agency is investigating this nexus between bribes and loans. 'ED has found gross violations in Yes Bank loan approvals to RAAGA companies, such as Credit Approval Memorandums (CAMs) being back-dated and investments being proposed without any due diligence or credit analysis, in violation of the bank's credit policy,' the source noted. The source further said that in violation of loan terms, the funds were diverted to multiple group and shell companies. 'Some red flags found by ED include: loans given to entities with weak financials; no proper documentation of loans; no due diligence; borrowers with common addresses and directors; diversion of loans to promoter group entities; evergreening of GPC loans; loans onward lent on the same date; loans disbursed on the same day as the application date; loans disbursed prior to sanction; and misrepresentation of financials,' the source added. The SEBI is also learnt to have shared its findings with the ED in the case of Reliance Home Finance Ltd (RHFL). A dramatic rise in corporate loans by RHFL—from ₹3,742.60 crore in FY18 to ₹8,670.80 crore in FY19—is under scrutiny. Issues of irregular and expedited approvals, process deviations and several other illegalities have been flagged. Earlier this week, the State Bank of India (SBI) classified Reliance Communications, along with promoter-director Anil D Ambani, as 'fraud', and is also in the process of lodging a complaint with the Central Bureau of Investigation (CBI), Parliament was informed on Monday. The entities were classified as fraud on 13 June 2025, in accordance with the Reserve Bank of India's Master Directions on Fraud Risk Management and the bank's board-approved policy on classification, reporting and management of frauds, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha. 'On 24 June 2025, the bank reported classification of fraud to the RBI and is also in the process of lodging a complaint with the CBI,' he said.
