ED Attaches Additional Rs 1,120 Crore of Reliance Anil Ambani Group Assets in Yes Bank Fraud Investigation
India's Enforcement Directorate has attached assets worth Rs 1,120 crore belonging to the Reliance Anil Ambani Group as part of an ongoing investigation into alleged fraud involving Yes Bank, bringing the total value of seized properties in the case to nearly Rs 10,117 crore. The latest attachment includes properties, fixed deposits, bank balances, and shareholdings across multiple companies within the conglomerate, according to an official statement from the financial investigation agency.
Background and Context
The investigation centers on transactions between 2017 and 2019 during which Yes Bank invested substantial amounts—Rs 2,965 crore in Reliance Home Finance Ltd (RHFL) instruments and Rs 2,045 crore in Reliance Commercial Finance Ltd (RCFL) instruments. By December 2019, these investments had turned non-performing, with outstanding amounts of Rs 1,353.50 crore for RHFL and Rs 1,984 crore for RCFL remaining unpaid. The probe revealed that these Reliance entities had received public funds exceeding Rs 11,000 crore, with investigators alleging that money was deliberately routed through Yes Bank to circumvent regulatory restrictions.
Key Figures and Entities
The investigation targets multiple companies within the Reliance Anil Ambani Group, including Reliance Communications Ltd (RCOM), Reliance Home Finance Ltd, Reliance Commercial Finance Ltd, Reliance Infrastructure Ltd, and Reliance Power Ltd. According to agency statements, Anil Ambani was questioned for eight hours in connection with the case and subsequently summoned to appear before investigators. The Enforcement Directorate's action is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) against Reliance Communications, Anil Ambani, and others related to alleged financial irregularities.
Legal and Financial Mechanisms
Investigators allege that public money from mutual fund schemes was indirectly routed to Reliance Group finance companies through Yes Bank, circumventing SEBI regulations that prohibit direct investments due to conflict-of-interest rules. The agency claims that loans taken by one entity were used to repay loans of other group entities, transferred to related parties, or invested in mutual funds—violations of loan sanction terms. Specifically, investigators allege that over Rs 13,600 crore was used for "evergreening" of loans, Rs 12,600 crore diverted to connected parties, and Rs 1,800 crore invested in fixed deposits and mutual funds before being liquidated and rerouted to group entities. The probe also uncovered alleged misuse of bill discounting facilities and siphoning of funds outside India through foreign remittances.
International Implications and Policy Response
The case highlights significant regulatory vulnerabilities in India's financial system, particularly concerning the enforcement of conflict-of-interest regulations and the monitoring of inter-corporate transactions within conglomerates. Nine banks have declared the loan accounts of the Reliance group as fraud, with a total outstanding amount of Rs 40,185 crore from domestic and foreign lenders dating back to 2010-2012. The investigation's findings raise questions about the effectiveness of oversight mechanisms designed to protect public funds in financial institutions and mutual funds, potentially prompting calls for strengthened regulatory frameworks and enhanced due diligence requirements for inter-corporate investments.
Sources
This report draws on official statements from the Enforcement Directorate, public records of the Central Bureau of Investigation, and regulatory documents from the Securities and Exchange Board of India (SEBI), as well as financial disclosures from the concerned corporate entities between 2017 and 2024.
