Latest news with #RanaKapoor
Kuwait Times
4 days ago
- Business
- Kuwait Times
India's crime agency probes Reliance Group
NEW DELHI: India's financial crime-fighting agency searched 35 locations linked to Reliance Anil Ambani Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source said on Thursday. The Enforcement Directorate alleges the group orchestrated a 'well-planned' scheme to siphon off 30 billion rupees ($350 million) in loans from YES Bank to many shell companies between 2017 and 2019, the source said on condition of anonymity, as he was not authorized to speak to the media. Anil Ambani's Reliance Group entities are accused of paying bribes to YES Bank officials before loans were disbursed, the source said, adding that loan approvals violated the bank's processes. The probe also found gross violations in YES Bank's loan approval process, such as lending to companies with weak financials, backdating credit memos, 'evergreening' loans - issuing fresh loans to avoid labeling assets as non-performing - and misrepresenting financials. A Reliance Group source said YES Bank had granted loans to Anil Ambani's entities after following the due process, and the entire exposure was fully secured. The allegation that bribes were given to secure loans was incorrect, the source said, adding that Reliance Home Finance (RHFL) extended fully secured loans on merit to privately-held companies of Rana Kapoor, the erstwhile promoter of YES Bank. These loans were fully repaid, including interest, the source said. Representatives for Reliance Group and YES Bank did not respond to requests for comment. Several group firms of Anil Ambani, the younger brother of billionaire Mukesh Ambani, have gone into bankruptcy since 2017. YES Bank, from which Anil Ambani group firms had borrowed heavily, was declared insolvent in 2020 and rescued by a group of Indian lenders in a plan approved by the central bank. Japan's Sumitomo Mitsui Banking Corp is seeking a 20 percent stake in a deal that has yet to get regulatory approval. Kapoor was charged with bank fraud by the financial crime agency in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in India's financial capital of Mumbai, according to local media reports. The financial crime agency can now seize or attach assets of Anil Ambani entities as the 'proceeds of crime', said Debopriyo Moulik, a lawyer at India's Supreme Court. However, the group companies can challenge the agency's findings in court, he said. Anil Ambani's group entities have been subject to several regulatory actions in recent years. In August 2024, the markets regulator SEBI barred Anil Ambani and 24 others from securities markets for five years, citing fund diversion from Reliance Home Finance. The markets regulator has shared findings of its investigation on Reliance Home Finance with the financial crime agency, which is likely to investigate a sharp rise in corporate loans granted by the finance company, the source said. Shares of Reliance Infrastructure and Reliance Power fell as much as 5 percent on Thursday after the news of the latest probe. The companies issued similar statements to Indian stock exchanges saying the agency's actions 'have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders' of the two companies. 'The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old,' the statements said. However, the government source said the agency's investigation found Reliance Infrastructure diverted over 100 billion rupees disguised as inter-corporate deposits (ICD) to other Reliance group entities through an undisclosed, but related entity. ICDs are unsecured loans extended by one company to another. An undisclosed related entity was used to bypass approvals from shareholders and the audit committee, the source said. The Reliance Group did not immediately respond to a separate Reuters' request seeking a comment on these allegations. Reliance Group's businesses range from defense to power and infrastructure, although Ambani himself is not on the boards of any listed entities, following orders passed by the market regulator, which Ambani has challenged. – Reuters
Hindustan Times
7 days ago
- Business
- Hindustan Times
Why ED raided Anil Ambani's Reliance Group-linked 50 companies
The Enforcement Directorate (ED) on Thursday carried out extensive raids at 35 locations across India as part of a probe into alleged loan fraud involving companies of Anil Ambani-led Reliance Anil Dhirubhai Ambani Group (ADAG). Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group(File Photo/Reuters) As previously reported by Hindustan Times, citing officials familiar with the matter, the searches were conducted at premises linked to over 50 companies and 25 individuals. The raids are part of a money laundering investigation initiated under the Prevention of Money Laundering Act (PMLA), based on two FIRs originally filed by the Central Bureau of Investigation (CBI) in September 2022. Yes Bank loans to Reliance firms under scrutiny The CBI cases pertain to loans extended by Yes Bank to Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). Both FIRs name former Yes Bank chairman Rana Kapoor. An officer from the probe agency said, 'Preliminary investigations have revealed a well-planned and thought-after scheme to divert or siphon off public money by cheating banks, shareholders, investors, and other public institutions.' He further added, 'The offence of bribing bank officials, including founder of Yes Bank [Rana Kapoor] is also under scanner." A second official involved in the investigation said ED suspects illegal diversion of around ₹3,000 crore in loans issued by Yes Bank between 2017 and 2019. 'We have also found that just before the loan was granted, the Yes Bank promoters [Kapoor] received money in their concerns. The ED is investigating this nexus of bribe and the loan,' the officer added. Another ED official highlighted 'gross violations' in loan approvals, pointing to systemic lapses in Yes Bank's internal processes. 'Credit approval memorandums (CAMs) were back-dated, investments were proposed without any due diligence or credit analysis in violation of the bank's credit policy,' the officer said. Loans routed through shell firms and group companies Investigators have uncovered evidence of loan diversions to multiple group companies and shell firms, flouting the terms of lending. The agency also identified several red flags, including: Loans to financially weak entities Absence of proper documentation Borrowers with common addresses and directors Loans disbursed on or before the application date Evergreening of loans Misrepresentation of financial data 'These findings clearly indicate a pattern of financial mismanagement and manipulation,' an officer said. The ED is also probing a sharp increase in corporate loans disbursed by RHFL, which jumped from ₹3,742.60 crore in FY 2017–18 to ₹8,670.80 crore in FY 2018–19. Apart from the CBI, several regulatory and financial institutions including the Securities and Exchange Board of India (SEBI), National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda have also provided inputs to the ED as part of the investigation. According to a Reuters report, shares of Reliance Infrastructure and Reliance Power dropped by up to 5% on Thursday following reports of ED probe. Reliance Group's statement In response, Reliance Infrastructure and Reliance Power issued a statement: 'The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old,' the companies said. They further added, 'RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years. 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.' (With inputs from Neeraj Chauhan in New Delhi)
The Print
7 days ago
- Business
- The Print
ED raids Anil Ambani group companies in Yes Bank loan diversion case, 35 premises searched
Overall, the agency suspects Anil Ambani's group of companies committed fraud to the tune of Rs 14,000 crore, sources said, adding that Anil Ambani's undisclosed foreign bank accounts and assets are also under investigation by the anti-money laundering agency. Searches covered the premises of nearly 50 companies and 25 individuals associated with the case, sources in the agency told ThePrint. New Delhi: The Enforcement Directorate (ED) Thursday carried out raids at more than 35 premises linked to Reliance Anil Ambani Group companies as part of a probe into a money laundering case registered against two group firms. The case pertains to loan amounting to Rs 3,000 crore obtained from Yes Bank during the tenure of its former managing director, Rana Kapoor, and disbursed to Reliance Anil Ambani Group companies. ED's particular probe stems from two cases of the Central Bureau of Investigation, which were lodged in September 2022 against Kapoor and two firms controlled by Anil Ambani—Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL). Sources in the agency stated that the investigation conducted so far has indicated diversion of Rs 3,000 crore worth of loans from Yes Bank between 2017 and 2019, and that the loans were granted after the bank promoters received kickbacks. They further stated that the bank's promoters and those running the bank overlooked critical criteria, such as the bank's credit policy and document verification, before sanctioning loans of such large amount. 'ED has found gross violations in Yes Bank loan approvals to Reliance Anil Ambani Group companies, such as credit approval memorandums were back-dated, investments were proposed without any due diligence/credit analysis in violation of the bank's credit policy,' an ED official said. The agency has identified flaws, including the sanctioning of loans to firms with weak financials, without proper documentation, and to borrowers with common addresses and directors, which were further diverted to entities owned by the promoters of these firms on the same day of disbursement. Agency officials pointed out that several other institutions, including the Securities and Exchange Board of India (SEBI), National Housing Bank, National Financial Reporting Authority and Bank of Baroda have also shared their findings related to the 'misappropriation of loan amounts' by the Reliance Anil Ambani Group companies. 'SEBI flagged a dramatic increase in corporate loans by RHFL, from Rs 3,742.60 crore in the financial year 2017-18 to Rs 8,670.80 crore in FY2018-19, and several illegal practices such as irregular and expedited approvals, deviations from standard process. Other illegalities have (also) been found,' the ED official said. The searches come days after Union Minister of State (MoS) for Finance, Pankaj Chaudhary, informed Parliament that the State Bank of India had flagged a loan account of Reliance Communications, run by Anil Ambani, as 'fraud' and was in the process of approaching the CBI to register a complaint. This is an updated version of the report (Edited by Nida Fatima Siddiqui) Also Read: Reliance Defence bags Rs 600 crore export order from Germany's Rheinmetall
The Wire
7 days ago
- Business
- The Wire
ED Begins PMLA Investigation Against Anil Ambani's Reliance Group Companies
Over 35 premises, 50 companies and over 25 individuals are covered in search operations undertaken by the ED under section 17 of the Prevention of Money Laundering Act. A security guard outside industrialist Anil Ambani's office, in Mumbai, Thursday, July 24, 2025. The Enforcement Directorate on Thursday conducted simultaneous raids as part of a money laundering investigation linked to an alleged bank loan fraud of Rs 3,000 crore against Anil Ambani group companies and Yes Bank. photo: PTI. New Delhi: The Enforcement Directorate has begun investigating the Anil Ambani's Reliance Group companies after the Central Bureau of Investigation registered two first information reports against them. Over 35 premises, 50 companies and over 25 individuals are covered in search operations undertaken by the ED under section 17 of the Prevention of Money Laundering Act. The case has to do with Yes Bank, which in 2017, when it was headed by Rana Kapoor, invested in Reliance Commercial Finance Limited, Reliance Capital Ltd and Reliance Home Finance Ltd to the tune of Rs 900 crore, Rs 1,000 crore and Rs 1,000 crore respectively. In turn, Anil Ambani Group entities advanced loans to family entities of Rana Kapoor to the tune of Rs 285 crore, allegedly as bribe. Yes Bank's investments in the Anil Ambani Group companies turned 'non performing' in 2019, after which it filed a complaint with the CBI in 2020. The probe agency registered FIRs RC2242022A0002 and RC2242022A0003 in 2022. The ED conducted searches after a three-year gap. Other agencies and institutions like the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda are also learnt to have shared information with the ED. 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 the promoters of Yes Banks Limited is also under the ED's scanner. The ED has said that its preliminary investigation reveals illegal loan diversion of around Rs 3,000 crores from Yes Bank between 2017 and 2019. ED has found that just before the loan was granted, Yes Bank promoters received money in their concerns. Among violations that the ED found in Yes Bank loan approvals to Reliance Anil Ambani Group of companies are backdated credit approval memorandums, investments proposed without any due diligence or credit analysis in violation of banks credit policy and so on. In violation of loan terms, these loans were further diverted to many group companies and shell companies. Some red flags found by ED include the fact that loans given to entities with weak financials, no proper documentation of loans, no due diligence, borrowers have common addresses or common directors and so on. The ED also found diversion of loans to promoter group entities, ever-greening of GPC loans, loans onward lent on same date, loans disbursed on same date as date of application, loans disbursed prior to sanction, and misrepresentation of financials. SEBI is also learnt to have shared its findings with ED in the case of Reliance Home Finance Ltd. The ED is looking at a dramatic increase in corporate loans by RHFL, from Rs 3,742.60 crore in FY 2017-18 to Rs 8,670.80 crore in FY 2018-19. It is also investigating issues of irregular and expedited approvals, process deviations and other illegalities. Reliance Power's and Infrastructure's statements Reliance Power and Reliance Infrastructure have released identical notes saying that the ED's actions "have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of" Reliance Power or Reliance Infrastructure. "The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old. It is clarified that [Reliance Power/Reliance Infrastructure] is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL," it said. They also added that while RCOM is undergoing the corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, for the last six years, RHFL has been fully resolved following a Supreme Court judgement. "Further, Mr. Anil D. Ambani is not on the Board of [Reliance Power/Reliance Infrastructure] . Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of [Reliance Power/Reliance Infrastructure]," the statements said. The Wire is now on WhatsApp. Follow our channel for sharp analysis and opinions on the latest developments.
New Indian Express
7 days ago
- Business
- New Indian Express
ED raid on Anil Ambani companies: What led to this investigation
CHENNAI: The Enforcement Directorate (ED) on Thursday raided over 35 premises, 50 companies, and around 25 individuals linked to Anil Ambani's Reliance Group under Section 17 of the Prevention of Money Laundering Act (PMLA) in connection with an alleged Rs 3,000 crore loan scam involving Yes Bank. According to preliminary findings, the ED has uncovered a 'well-planned scheme' to siphon or divert Rs 3,000 crore between 2017 and 2019. The agency suspects bribe payments to Yes Bank promoters' personal accounts shortly before the loan disbursals. Yes Bank–Rana Kapoor Probe The case builds on a broader investigation that began in 2020, when the ED linked Anil Ambani's group of companies—including nine entities that had borrowed nearly Rs 12,800 crore—to money laundering activities involving Yes Bank's then-promoter Rana Kapoor. Ambani was interrogated under PMLA provisions, with sessions reportedly lasting over nine hours. The 2020 probe also covered other major borrowers such as Essel, DHFL, Cox & Kings, Jet Airways, and Indiabulls, focusing on alleged kickbacks and irregularities in loan sanctioning. RCom Loan Fraud Allegations Involving Other Banks In June 2025, State Bank of India (SBI) independently classified the loan account of Reliance Communications (RCom) and its promoters as "fraud", and reported the case to the Reserve Bank of India (RBI). The exposure included Rs 2,227 crore in fund-based and Rs 786 crore in non-fund-based loans. SBI's classification cited serious allegations, including diversion of funds, misuse of loan proceeds, circular transactions among group companies, and unexplained invoice irregularities This action followed a series of show-cause notices and forensic audit reviews conducted in December 2023, March 2024, and September 2024, in line with the RBI's updated fraud reporting framework. SBI's forensic audit revealed that RCom and its affiliated entities borrowed over ₹31,500 crore from various banks. Of this, about Rs 13,667 crore (44%) was used to repay earlier loans; Rs 12,692 crore (41%) was transferred to related parties; and over Rs 6,265 crore was allegedly diverted for unauthorised purposes. The audit also highlighted a complex intra-group fund movement strategy, where loans were routed through subsidiaries such as Reliance Telecom (RTL) and Reliance Infratel (RITL) to settle unrelated liabilities. Divergence Among Lenders: Canara Bank's Reversal Another lender, Canara Bank, had also previously marked RCom's account as fraudulent. However, in July 2025, it withdrew the classification in the Bombay High Court, reversing its earlier stance—highlighting inconsistencies in how banks are responding to the same borrower. However, in mid-2024, the RBI revised its Master Directions on Frauds, mandating a 21-day notice period, and a fair hearing process for borrowers before any loan account is declared fraudulent. These reforms were prompted by Supreme Court observations against earlier unilateral practices by lenders. Key Implications Once an account is flagged as fraud, the borrower becomes ineligible for new credit from regulated financial institutions for five years. SBI's decision to file a complaint with the CBI could trigger criminal investigations and possible legal proceedings against Anil Ambani and others. The reversal by Canara Bank has added regulatory ambiguity, as banks adopt differing interpretations of similar forensic evidence. RCom and Anil Ambani's Response RCom argues that under Section 32A of the Insolvency and Bankruptcy Code (IBC), it is shielded from legal proceedings for acts committed before insolvency proceedings began in June 2019. Anil Ambani's legal team contends that he served only as a non-executive director, with no role in day-to-day management. The legal team of Ambani also stated that SBI's classification was issued ex parte, without a full hearing or disclosure of forensic findings, and similar notices against other independent directors were previously withdrawn. ED's Investigative Focus and Legal Context In the Yes Bank case, the ED has alleged that diversion of funds for unauthorised uses, back-dating of Credit Approval Memorandums (CAMs), and lack of due diligence. There is also suspicion of bribery, as funds were reportedly transferred to Yes Bank promoters' personal accounts just prior to loan approvals. The ED's investigation is being assisted by inputs from other regulatory agencies, including the CBI, NHB, SEBI, NFRA, and Bank of Baroda. Under Section 17 of PMLA, the ED is empowered to conduct searches and seizures to gather evidence in suspected money laundering cases. What Next The ED will continue interrogations and evidence collection to establish the diversion-bribery nexus. SBI's complaint could also result in a CBI FIR and potential criminal prosecution. And, the regulatory oversight on borrower classification and restructuring will likely intensify. While the Rs 3,000 crore loan diversion case marks the most significant escalation in the ongoing Yes Bank probe, which began in 2020 and involves multiple high-profile borrowers, including Anil Ambani, the evolving status of 'fraud' tags—alongside RBI's reforms and banks' varied responses—signals increasing regulatory assertiveness and growing accountability in high-value corporate lending.
