Daijiworld Media Network - Mumbai
Mumbai, Jul 26: The Enforcement Directorate (ED) on Saturday intensified raids at multiple premises linked to Anil Ambani’s Reliance Group, also known as RAAGA Companies, in a sweeping investigation tied to the Yes Bank loan fraud case.
The crackdown, which began Thursday, has now expanded across Mumbai and Delhi, with officials reportedly seizing large volumes of documents, hard drives, and digital records.
The ED’s investigation stems from suspected violations under the Prevention of Money Laundering Act (PMLA), involving alleged diversion of public funds, loan fraud, and the use of shell entities. The Central Bureau of Investigation (CBI) is also conducting a parallel probe into various companies within the Reliance Group. The case under scrutiny involves financial irregularities estimated at over Rs 24,000 crore.
According to officials, the probe centers on whether Yes Bank loans were granted without due diligence, with credit approval documents back-dated and loan terms violated. In many instances, loans reportedly ended up routed through shell firms to other entities within the group.
A Rs 3,000 crore illegal loan diversion between 2017 and 2019 is under particular focus. Investigators believe that Yes Bank promoters may have received funds in their personal accounts just before loans were sanctioned — pointing toward possible bribery and quid pro quo arrangements.
In addition to inputs from the CBI, the ED has received supporting evidence from multiple regulatory and financial bodies, including SEBI, National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda.
SEBI's findings reportedly flagged suspicious corporate lending patterns at Reliance Home Finance Ltd (RHFL) — a sudden spike in corporate loans from Rs 3,742.6 crore in FY18 to Rs 8,670.8 crore in FY19 — a figure now under the ED's scanner.
Authorities have suggested the presence of a “planned and systematic fraud” designed to mislead banks, shareholders, and investors, with top officials of Yes Bank and RAAGA companies possibly complicit in financial misconduct and bribery.
Further action, including arrests and asset seizures, is expected as the probe deepens.