Industrialist Anil Ambani has come under the scanner of the Enforcement Directorate (ED)

in connection with an alleged ₹17,000 crore loan fraud tied to various companies under his Reliance Group. As part of the ongoing probe, the agency has issued a lookout circular against Ambani to prevent any attempt to leave the country. He has been summoned to appear at the ED’s headquarters in New Delhi on August 5, according to sources familiar with the matter.
 

The ED’s investigation is centered around suspected financial irregularities and violations

under the Prevention of Money Laundering Act (PMLA). The agency is probing the operations of companies falling under the RAAGA (Reliance Anil Ambani Group of Associates) umbrella. This includes Reliance Infrastructure and Reliance Communications, both previously led by Anil Ambani.

On July 24, the ED carried out an extensive search operation across 35 locations associated with Reliance Group companies and individuals linked to them. In total, 50 companies and 25 persons came under scrutiny during the raids. These actions were based on a money laundering case filed after a CBI FIR, which alleged significant diversion and misuse of bank loans by the group entities.

ED suspects regulatory bypass and fund diversion

A key finding of the ED’s preliminary investigation points to large fund transfers routed through a previously undisclosed related party referred to as “C Company.” These transactions were allegedly structured to avoid regulatory and audit scrutiny, as they were carried out without seeking shareholder or auditor approval. According to the ED, such practices indicate deliberate attempts to bypass governance norms and hide financial dealings from regulators.

The agency further revealed that Reliance Communications, also promoted by Ambani, fraudulently defaulted on loans exceeding ₹14,000 crore (approximately $1.68 billion). The State Bank of India (SBI) has categorized the Reliance Communications account as fraudulent and is in the process of approaching the Central Bureau of Investigation (CBI) for further action.

In addition to domestic financial improprieties, the ED is now expanding its investigation to trace potential foreign bank accounts and undisclosed overseas assets that may be linked to Anil Ambani or entities under the RAAGA banner. Officials say this expansion follows emerging evidence suggesting international elements to the financial misconduct.

COMPANY's RESPONSE

In response to these developments, Reliance Infrastructure issued a statement addressing the concerns raised by the ED. The company clarified that the issue in question pertains to a matter that is over a decade old and relates to the alleged diversion of ₹10,000 crore through a related party that had not been disclosed at the time. However, the company contended that its actual exposure, as reflected in publicly disclosed financial statements, was around ₹6,500 crore.

Reliance Infrastructure further stated that the matter had undergone mediation conducted by a retired Supreme Court judge. Through this process, a mediation award was filed before the Bombay High Court, resulting in a settlement aimed at recovering the full amount of the company’s exposure — roughly ₹6,500 crore.

Decade-old matter: Ambani off board since 22

Importantly, the company emphasized that Anil Ambani has not served on the Board of Directors of Reliance Infrastructure since March 2022. The clarification appears intended to distance Ambani from the operational decisions that are currently under ED scrutiny.

The unfolding developments mark a serious escalation in the regulatory investigation into the financial activities of Anil Ambani’s group companies. With summons issued, foreign assets under probe, and both the ED and CBI actively involved, the case has drawn national attention and could have significant legal and financial ramifications for one of India’s most high-profile business figures.