Anil Ambani summoned by ED in Rs 3,000 crore loan fraud case

New Delhi: Reliance Group chairman Anil Ambani has been asked to appear before the Enforcement Directorate on August 5 in connection with a money laundering case linked to alleged Rs 3,000 crore bank loan fraud. The summons came nearly a week after the ED conducted searches at multiple premises linked to Ambani in Delhi and Mumbai and recovered several documents and computer peripherals.

The raids were conducted last Thursday at over 50 firms linked to Ambani in 35 locations based on two FIRs filed by the CBI alleging large-scale financial irregularities. More than 25 individuals were also interrogated. 

The preliminary investigation by ED revealed a "well-planned and "thought-out scheme" to siphon off public money by cheating banks, shareholders, investors and other public institutions. The ED in its probe also found that senior bank officials, including former promoters of Yes Bank Ltd, were bribed , to facilitate large unsecured loans. There was also an "illegal loan diversion" of around Rs 3,000 crore from Yes Bank between 2017 and 2019, the ED alleged.  It also found "gross violations" in Yes Bank loan approvals to RAAGA companies -- entities under the Reliance Anil Ambani Group. The ED is investigating the alleged nexus of bribe and the loan.

Several red flags were highlighted by the ED in its probe, including loans were given to entities with poor or unverified financials, there was no proper documentation in sanction files and use of common directors and addresses across multiple borrowing entities. The probe also revealed several other irregularities including diversion of loans to promoter group entities, instances of "loan evergreening" -- where fresh loans were given to repay existing ones, disbursement of loans on same date as date of application, disbursement of loans prior to sanction and misrepresentation of financials.