ED Raids Multiple Mumbai Properties Linked to Anil Ambani: Unveiling a Well-Planned Scheme to Siphon Off Public Money
The Enforcement Directorate (ED) conducted raids on several premises in Mumbai linked to Anil Ambani, following SBI's declaration of him as a 'fraud' account holder. The operation involved 35 premises, 50 companies, and over 25 individuals, all suspected of money laundering and illegal financial activities.
EdAnil AmbaniSbiFraudMoney LaunderingReal Estate MumbaiJul 24, 2025
According to ANI, quoting ED sources, the raids were initiated following the filing of FIRs by the Central Bureau of Investigation (CBI). The ED began investigating alleged money laundering activities by the Reliance Anil Ambani Group Companies (RAAGA). Other agencies and institutions, including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda, provided crucial information to the ED.
Preliminary investigations by the ED have revealed a well-planned and sophisticated scheme to divert and siphon off public money. The scheme is believed to have cheated banks, shareholders, investors, and other public institutions. The ED is also probing allegations of bribery involving bank officials, including the promoter of Yes Bank Limited.
The probe has uncovered an alleged illegal loan diversion of around ₹3000 crore from Yes Bank between 2017 and 2019. The ED has found that just before the loan was granted, the Yes Bank promoters allegedly received money in their accounts. The ED is investigating the nexus between these bribes and the loans. Gross violations in Yes Bank loan approvals to RAAGA companies have also been identified, such as back-dated Credit Approval Memorandums (CAMs) and investments proposed without due diligence or credit analysis, in violation of the bank's credit policy.
In this regard, over 35 premises, 50 companies, and more than 25 individuals are covered in the ongoing search operation launched by the ED under Section 17 of the Prevention of Money Laundering Act.
Meanwhile, the State Bank of India (SBI) has classified Reliance Communications and its promoter director, Anil D. Ambani, as ‘fraud.’ This classification was made on June 13, 2025, in accordance with the Reserve Bank of India's (RBI) Master Directions on Fraud Risk Management and the Bank's Board-approved Policy on Classification, Reporting & Management of Frauds.
On June 24, 2025, SBI reported the classification of fraud to the RBI and is in the process of lodging a complaint with the CBI. On July 1, 2025, the Resolution Professional of RCom informed the Bombay Stock Exchange about the fraud classification by the bank.
SBI's credit exposure in RCom includes a fund-based principal outstanding of ₹2,227.64 crore, along with accrued interest and expenses from August 26, 2016, and a non-fund-based Bank Guarantee of ₹786.52 crore.
The ongoing investigation by the ED and the classification of Anil Ambani as a fraud by SBI highlight the severity of the financial irregularities and the extent of the alleged illegal activities. The ED's raids and the subsequent investigations are expected to shed more light on the intricacies of the scheme and bring those involved to justice.
Frequently Asked Questions
What is the Prevention of Money Laundering Act (PMLA)?
The Prevention of Money Laundering Act (PMLA) is a law in India designed to prevent money laundering and to provide for the confiscation of property derived from, or involved in, money laundering. It aims to combat financial crimes and ensure that proceeds from illegal activities are not used to fund further crimes.
Why did the ED raid Anil Ambani's properties?
The ED conducted raids on Anil Ambani's properties following allegations of a well-planned scheme to siphon off public money through illegal financial activities, including money laundering, bribery, and loan diversion. The raids were part of an investigation into the Reliance Anil Ambani Group Companies (RAAGA).
What is the role of the CBI in this investigation?
The Central Bureau of Investigation (CBI) has filed FIRs related to the alleged financial irregularities involving Anil Ambani and his companies. The CBI's FIRs triggered the ED's investigation into the money laundering allegations. The CBI is also expected to receive a complaint from the State Bank of India regarding the fraud classification.
How much money is involved in the alleged loan diversion from Yes Bank?
The ED's probe has revealed an alleged illegal loan diversion of around ₹3000 crore from Yes Bank between 2017 and 2019. The investigation is ongoing to uncover the full extent of the financial irregularities.
What is the SBI's credit exposure in Reliance Communications?
The State Bank of India (SBI) has a credit exposure in Reliance Communications (RCom) of ₹2,227.64 crore in fund-based principal outstanding, along with accrued interest and expenses from August 26, 2016, and a non-fund-based Bank Guarantee of ₹786.52 crore.
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