Indian authorities attach assets worth Rs 1,885 crore in Anil Ambani Reliance Group fraud probe
India's Enforcement Directorate has provisionally attached assets worth Rs 1,885 crore (£170 million) linked to businessman Anil Ambani's Reliance Group as part of an ongoing investigation into alleged bank fraud. The latest attachment brings the total value of seized assets to approximately Rs 12,000 crore in cases involving multiple Reliance Group entities, according to an official statement released by the federal agency.
The confiscated assets include shareholdings in major infrastructure companies, substantial bank balances, and properties belonging to senior employees of the conglomerate. The action follows allegations that public funds were systematically diverted through a complex web of financial transactions designed to conceal the movement of money between connected entities.
Background and Context
The investigation centers on allegations that several Reliance Group companies engaged in large-scale loan evergreening, a practice where existing loans are refinanced or repaid using new borrowing to mask financial distress. According to the Enforcement Directorate's investigation, funds were allegedly diverted through a circuitous route involving Yes Bank and Reliance Nippon Mutual Fund, potentially circumventing regulatory restrictions on conflict-of-interest transactions.
The probe encompasses multiple cases including those against Reliance Home Finance Ltd, Reliance Commercial Finance Ltd, and Reliance Communication Ltd. Nine domestic and foreign banks have collectively declared loan accounts of the group as fraudulent, with outstanding amounts totaling Rs 40,185 crore as of the latest filings.
Key Figures and Entities
The investigation targets Anil Ambani, chairman of Reliance Group, and several of his companies including Reliance Communication Ltd (RCOM), Reliance Home Finance Ltd (RHFL), Reliance Commercial Finance Ltd (RCFL), Reliance Infrastructure Ltd, and Reliance Power Ltd. The Enforcement Directorate has identified several senior employees, including Angarai Sethuraman and Puneet Garg, whose personal assets have been attached in connection with the case.
Yes Bank features prominently in the investigation for its investments in Reliance Group entities. Between 2017-2019, the bank invested Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL instruments, which subsequently became non-performing assets. The bank had previously received substantial funds from Reliance Nippon Mutual Fund before extending credit to the Reliance Group companies.
Legal and Financial Mechanisms
According to investigators, the alleged fraud scheme involved multiple sophisticated mechanisms to divert funds. Loans taken by one entity were allegedly used to repay debts of other group entities, transferred to related parties, or invested in mutual funds—actions that allegedly violated the terms and conditions of loan sanction letters. The Enforcement Directorate claims that over Rs 13,600 crore was used for loan evergreening, while Rs 12,600 crore was allegedly diverted to connected parties.
The investigation has also uncovered alleged misuse of bill discounting facilities to funnel funds to connected parties and evidence of funds being siphoned out of India through foreign outward remittances. The Enforcement Directorate's findings suggest a systematic scheme to manipulate financial records and mislead lenders about the actual financial position of the borrowing entities.
International Implications and Policy Response
The case highlights ongoing challenges in India's banking regulatory framework, particularly regarding conflict-of-interest rules and oversight of inter-corporate transactions within large conglomerates. The alleged routing of mutual fund investments through Yes Bank to circumvent regulatory restrictions demonstrates potential gaps in the current supervisory architecture.
The scale of the alleged fraud—spanning multiple financial institutions and involving thousands of crores in public money—underscores the systemic risks posed by connected lending within business groups. The case may prompt regulatory authorities to strengthen oversight mechanisms and enhance transparency requirements for related-party transactions in India's financial sector.
Sources
This report draws on official statements from India's Enforcement Directorate, public documents filed with regulatory authorities, and previous investigations conducted by Indian law enforcement agencies into Reliance Group companies between 2017 and 2024.
