ED Raids Anil Ambani in Money Laundering Probe Linked to Yes Bank: Impact on Reliance Power and Share Prices
Mumbai, July 25, 2025 – In a major development shaking corporate circles, the Enforcement Directorate (ED) conducted raids at multiple locations linked to industrialist Anil Ambani in connection with an ongoing money laundering investigation. The probe is reportedly linked to suspicious transactions involving Yes Bank, adding a fresh chapter to Ambani’s troubled business legacy.
What Is the ED Investigating?
According to sources close to the investigation, the ED raids on Anil Ambani are part of a broader crackdown on alleged money laundering activities under the Prevention of Money Laundering Act (PMLA). Officials say the raids are based on loans and financial irregularities involving Yes Bank and Reliance Group entities, particularly Reliance Power and Reliance Infrastructure.
The ED suspects that loans worth several hundred crores disbursed by Yes Bank to Ambani-led firms were misused and possibly siphoned off, raising red flags under India’s anti-money laundering framework.
Raids Conducted at Multiple Locations
On Friday, ED officials conducted search operations at Anil Ambani’s Mumbai residence and corporate offices. Digital devices, financial documents, and transaction records were seized during the raids.
This marks another setback for the embattled billionaire, whose companies have been under intense financial stress over the past few years.
Stock Market Reaction: Reliance Power & RPower Share Price Fall
The news of ED raids had an immediate impact on Reliance Power shares, with RPower share price falling by nearly 6.5% in early trading. Investors reacted nervously, fearing legal trouble and regulatory pressure.
Reliance Power Share Price Today: 56.78 INR −2.99 (5.00%)today 25 Jul, 10:16 am IST (↓6.5%)
Reliance Infra Share Price Today:341.85 INR −18.00 (5.00%)today 25 Jul, 10:17 am IST(↓4.8%)
Market analysts noted that the sentiment around Reliance Infrastructure and other Anil Ambani-backed companies has remained weak due to ongoing debt and performance issues, and the latest raids could further dampen investor confidence.
Reliance Power Under Scrutiny
Once hailed as a rising star in India’s power sector, Reliance Power has seen a significant downfall over the past decade. From ambitious thermal and solar projects to mounting debts, the company has struggled to regain its footing.
Now, with the ED tightening its grip, the company’s financial books may face deeper scrutiny—especially concerning past loan agreements and fund transfers involving Yes Bank.
Anil Ambani Yet to Respond
As of now, Anil Ambani has not issued an official statement regarding the ED action. Legal experts expect that the industrialist may be summoned for questioning in the coming weeks.
In previous cases, Ambani has denied all wrongdoing, maintaining that his businesses are law-abiding and fully cooperative with authorities.
Background: Yes Bank Link
This isn’t the first time Yes Bank has been at the center of a corporate investigation. Under the leadership of former CEO Rana Kapoor, the bank extended large loans to several high-risk companies, many of which later defaulted. Anil Ambani’s group companies were among the top borrowers, raising suspicions about fund diversion and round-tripping.
What’s Next for Investors?
Investors holding shares of RPower and Reliance Infra are advised to exercise caution. While the full impact of the ED investigation is yet to unfold, the developments have created short-term volatility and long-term uncertainty.
Summary of Key Points:
| Topic | Details |
|---|---|
| Who | Anil Ambani, Reliance Power |
| What | ED raids in money laundering case |
| Where | Mumbai, at Ambani’s residence & offices |
| Why | Probe linked to Yes Bank loan fraud |
| Impact | RPower & Reliance Infra shares decline sharply |
| Next Steps | Possible ED summons, deeper financial probe |
Anil Ambani Was Raided: ED Examines More Than 35 Locations, 50 Businesses, and 25 IndividualsAccording to reports, the Enforcement Directorate is conducting raids on properties in Delhi and Mumbai connected to Anil Ambani, the chairman of the Reliance Group, as part of a money laundering investigation.
ED Raids Target Anil Ambani: 35+ Sites Searched, 50 Firms and 25 People Under Probe
According to reports, the Enforcement Directorate is conducting raids on locations connected to Anil Ambani, the chairman of the Reliance Group, in Delhi and Mumbai as part of a money laundering probe. This comes after the Central Bureau of Investigation (CBI) filed two formal complaints alleging widespread financial irregularities.
ED officers raided and inspected documents from more than 50 companies purportedly involved in the case as part of the probe. Additionally, over 25 people were questioned. Sources claim that the investigating agency is searching about 35 different places. According to the ED’s preliminary inquiry, there was a “well-planned and thought-out scheme to siphon off public money by cheating banks, shareholders, investors, and other public institutions.”
In order to facilitate large unsecured loans, the suspected offenses also include bribing senior bank officials, including former Yes Bank Ltd. promoters.
It is estimated that Yes Bank lent RAAGA firms, which are part of the Reliance Anil Ambani Group, over Rs 3,000 crore between 2017 and 2019. Just prior to approving the loans, the ED allegedly discovered an illicit quid pro quo arrangement in which Yes Bank promoters allegedly received payments in their privately held companies.
Numerous red flags have been raised by the investigation, including loans to businesses with dubious or unconfirmed financial records, the use of the same directors and addresses by several borrowing entities, the absence of necessary documentation in sanction files, the transfer of funds to shell companies, and cases of “loan evergreening”—the practice of awarding new loans to pay back old ones.
Senior Yes Bank officials and promoters are believed to have assisted in the facilitation of these improper loans, according to sources. The investigation team believes that important bank executives may have accepted personal favors or payments in exchange for authorizing sizable, unsecured loans to specific RAAGA businesses.
The National Housing Bank (NHB), Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda are among the regulatory and financial organizations that have provided the ED with their own conclusions.
Serious irregularities inside the group firm Reliance Home Finance Limited (RHFL) have been highlighted in a report presented by SEBI. The study claims that the company’s corporate loan portfolio increased by over twofold between FY 2017–18 and FY 2018–19, from Rs 3,742 crore to Rs 8,670 crore.
Separately, Anil Ambani’s group firm, Reliance Communications (RCom), and Mr. Ambani personally have been labeled “fraud” accounts by the State Bank of India (SBI).
The bank has already declared the account to be fake. Prior to filing a case with the CBI on January 5, 2021, SBI had designated RCom and Mr. Ambani as fraudulent accounts in November 2020. The complaint was then withdrawn when the Delhi High Court gave a status quo order on January 6.
FAQ
1. Why is Anil Ambani under the Enforcement Directorate (ED) scanner?
Anil Ambani, chairman of the Reliance Group, is under investigation for alleged money laundering involving the misuse of public funds, unsecured loans, and bribery of bank officials. The ED suspects a large-scale financial scam involving companies linked to his group.
2. How many locations and businesses have been raided?
The ED has reportedly raided 35+ locations in Delhi and Mumbai and is examining over 50 businesses and 25 individuals connected to the case.
3. What are the main allegations against Anil Ambani and his group companies?
The core allegations include:
Siphoning off public money
Bribing senior bank officials (especially from Yes Bank)
Facilitating large unsecured loans through shell companies
Cheating banks, investors, and public institutions
Engaging in quid pro quo arrangements with bank promoters
4. Which companies are at the center of this investigation?
Firms under the Reliance Anil Dhirubhai Ambani Group (RAAGA) are being scrutinized, particularly Reliance Home Finance Ltd (RHFL) and Reliance Communications (RCom).
5. What role did Yes Bank play in this alleged scam?
Yes Bank reportedly disbursed loans exceeding ₹3,000 crore to RAAGA firms between 2017 and 2019. ED claims this was done through questionable means, involving bribes and favors to Yes Bank promoters.
6. Are there signs of systematic fraud?
Yes. Investigators found:
Multiple firms using the same directors and addresses
Lack of documentation in sanction files
“Loan evergreening” practices
Use of shell companies to circulate funds
These patterns suggest a deliberate and well-planned scheme.
7. Which regulatory bodies are involved in this investigation?
The following regulators have provided inputs to the ED:
SEBI
NHB (National Housing Bank)
NFRA (National Financial Reporting Authority)
Bank of Baroda
8. What did SEBI’s report reveal?
SEBI flagged major irregularities in Reliance Home Finance Ltd’s corporate loan portfolio, which more than doubled from ₹3,742 crore in FY 2017–18 to ₹8,670 crore in FY 2018–19—raising suspicions of manipulation.
9. Has any action been taken by the State Bank of India (SBI)?
Yes. In 2020, SBI labeled Reliance Communications (RCom) and Anil Ambani personally as “fraudulent accounts.” Although the CBI filed a complaint in January 2021, it was temporarily withdrawn following a Delhi High Court order.
10. Is this the first time Anil Ambani has been probed by financial agencies?
No. In the past, Anil Ambani and his group companies have faced scrutiny over loan defaults, insolvency proceedings, and regulatory violations, including court cases linked to non-payment of dues.
11. Could criminal charges be filed following these ED raids?
Yes. If sufficient evidence is collected, ED could file a money laundering case under the Prevention of Money Laundering Act (PMLA). This could be followed by prosecution or attachment of assets.
12. What is the potential impact of this probe on Reliance Group companies?
The investigation may lead to:
Freezing of bank accounts and assets
Fall in stock prices of listed group entities
Legal liability for directors and promoters
Investor concerns regarding governance and transparency
13. Has Anil Ambani or the Reliance Group issued an official statement?
As of now, no formal statement has been released by Anil Ambani or the Reliance Group regarding the ongoing ED raids or allegations.
14. What is “loan evergreening”?
It’s a fraudulent banking practice where new loans are given to repay old ones, to avoid declaring defaults and to make loan books look healthy. It’s often used to hide bad debts.
15. What should investors and the public keep in mind?
Wait for verified information from ED or courts.
Monitor regulatory filings and press statements.
Understand that these are preliminary findings and no one is proven guilty yet.
Add Business Connect magazine to your Google News feed
