Daijiworld Media Network – Mumbai

Mumbai, Jul 25: The Enforcement Directorate (ED) has intensified its investigation into alleged financial irregularities involving a Rs 2,850 cr investment made by Reliance Mutual Fund in Yes Bank's Additional Tier-1 (AT-1) bonds. These high-risk bonds were written off during Yes Bank’s bailout, resulting in massive losses for public investors, ED sources told.

The agency suspects a possible quid pro quo arrangement behind the investment, which is also being examined by the Central Bureau of Investigation (CBI).

Expanding the scope of the probe, the ED has reportedly uncovered fund diversions amounting to over Rs 10,000 crore linked to Reliance Infrastructure through an undisclosed entity referred to as “C Company.” The findings have raised serious concerns over alleged financial mismanagement.

Officials also flagged a questionable loan restructuring deal worth Rs 5,480 cr by Reliance Infra, out of which only Rs 4 cr was recovered in cash. The rest of the settlement was routed through now-defunct distribution companies (discoms), casting doubt on the authenticity of the recovery.

Sources say Reliance Infra allegedly bypassed mandatory audits and funnelled large sums into entities under the RAAGA corporate group. The discoms tied to the Rs 6,499 cr settlement are reportedly non-operational, further deepening suspicions of a deliberate effort to mask fund misuse.

The ED’s probe gained momentum after searches were conducted at properties linked to industrialist Anil Ambani in Mumbai and Delhi, under the Prevention of Money Laundering Act (PMLA). Over 35 premises associated with Reliance Home Finance Ltd. were searched, involving nearly 50 companies and 25 individuals, sources confirmed.

Investigations into the financial dealings of the Reliance group are ongoing, with officials indicating that more disclosures are expected in the coming weeks.