The troubles for industrialist Anil Ambani are deepening as the Enforcement Directorate (ED) intensifies its probe into a suspected ₹17,000 crore loan fraud and money laundering case. In a significant move, the ED has issued a Look Out Circular (LOC) against Ambani to prevent him from leaving the country during the ongoing investigation. This development indicates that the probe has reached a critical stage and points to serious financial irregularities under scrutiny.
Anil Ambani has been summoned by the ED to appear before the agency’s headquarters in New Delhi on August 5. His statement will be recorded under the Prevention of Money Laundering Act (PMLA). Additionally, several executives associated with his companies are expected to be questioned in the coming days. While the ED has yet to release an official statement regarding the LOC, sources have confirmed the issuance as part of efforts to ensure his presence during the inquiry.
The ED’s investigation is based on FIRs registered by the Central Bureau of Investigation (CBI), alongside detailed reports from the National Housing Bank, Securities and Exchange Board of India (SEBI), National Financial Reporting Authority, and the Bank of Baroda. These reports suggest a deliberate and strategic plan to defraud public institutions, banks, investors, and shareholders by diverting funds and misrepresenting key financial data.
Last week, the ED conducted an extensive search operation across 35 locations involving 50 companies and 25 individuals connected with the Reliance Anil Ambani Group (RAAGA). This sweeping action hints at the scale and seriousness of the suspected money laundering network.
A key area of concern is the alleged diversion of funds by Reliance Infrastructure (R Infra) through a company named CLE. According to a SEBI report, R Infra masked the transaction as inter-corporate deposits (ICDs) to funnel funds into other Reliance Group companies. Crucially, CLE was not declared a “related party,” thereby bypassing the necessary shareholder and audit committee approvals.
The ED is also closely examining a ₹3,000 crore loan extended by Yes Bank to Ambani’s group companies between 2017 and 2019. Investigators have found that the promoters of Yes Bank allegedly received money shortly before these loans were approved. These transactions may have violated multiple banking norms, including back-dated approval documents and insufficient due diligence.
Another significant case under the ED’s lens involves a ₹1,050 crore loan fraud between Reliance Communications (RCOM) and Canara Bank. Reports have pointed to discrepancies in loan usage, along with the possibility of undeclared foreign bank accounts and assets linked to Ambani.
The agency is also probing alleged irregularities in the investment of ₹2,850 crore by Reliance Mutual Fund in Additional Tier 1 (AT-1) bonds. Investigators suspect there may have been a quid pro quo arrangement in this transaction, further intensifying the legal troubles facing the former business magnate.
Adding to the pressure, the Central government recently informed Parliament that the State Bank of India (SBI) has classified RCOM and Ambani as ‘fraud’ accounts and is in the process of formally reporting the matter to the CBI. This classification alone signals a major loss of trust from one of India’s largest public sector banks.
With multiple layers of alleged financial misconduct unfolding, the ED’s current focus is to establish a clear money trail and determine the extent of Ambani’s personal and corporate involvement. As the investigation progresses, more revelations are likely, potentially implicating other entities and individuals.
The issuance of the LOC not only restricts Ambani’s movement but also highlights the gravity of the financial crimes he is accused of. For a man once considered among India’s top business tycoons, the current legal storm marks a dramatic fall from grace.