India’s Enforcement Directorate (ED), the country’s top financial crime agency, has frozen properties valued at more than 75 billion rupees ($853 million) linked to the Reliance Anil Dhirubhai Ambani Group (ADAG). The assets include real estate across Mumbai, Delhi, and Chennai — among them, the Ambani family residence — according to an official statement released Monday.
The action is part of an ongoing investigation into alleged money laundering and loan diversion involving Reliance Communications Ltd and affiliated companies. The probe centers on loans exceeding $569 million that the group obtained from YES Bank between 2017 and 2019, which authorities say were misused and funneled through shell entities.
Allegations of loan “evergreening” and fund diversion
Investigators allege that Reliance Communications and related firms engaged in “loan evergreening,” a practice where new credit is issued to repay existing debt, disguising the true financial health of the borrower. According to the ED, more than 136 billion rupees were diverted under this scheme.
The agency said that Reliance Home Finance Ltd and Reliance Commercial Finance Ltd — both controlled by the Anil Ambani Group — received over 100 billion rupees in public funds through shell companies. These funds, it claimed, were used for unauthorized transactions such as repaying loans between group entities, transferring money to related parties, and investing in mutual funds in violation of loan agreements.
“ED’s investigation revealed that loans taken by one entity from one bank were utilized for repayment of loans taken by other entities from other banks,” the statement said, calling it a “fraudulent diversion of public money.”
Broader implications and corporate response
Reliance Infrastructure, another company under the Anil Ambani Group, said the ED’s action would have “no impact” on its operations, employees, or shareholders. Other group companies declined to comment, while YES Bank also refused to issue a statement.
A government source previously told Reuters that the Reliance entities are suspected of paying bribes to YES Bank officials before loans were approved, further deepening the corruption allegations.
The younger brother of billionaire Mukesh Ambani, Anil Ambani once led a major industrial empire spanning telecoms, finance, and infrastructure. However, the group has faced steep financial decline since 2019, when Reliance Communications filed for bankruptcy.
The ED’s latest move underscores India’s broader crackdown on corporate financial misconduct, which has targeted several high-profile business figures in recent years.