In another major setback for industrialist Anil Ambani, the Enforcement Directorate (ED) has intensified its investigation into the financial dealings of his companies. The agency has reached out to over a dozen public and private sector banks, demanding detailed information on loans sanctioned to several Reliance Group firms that were later classified as non-performing assets (NPAs). This development signals a deepening probe into what authorities suspect could be a large-scale case of financial mismanagement and possible fraud.
The ED’s latest move underscores growing scrutiny of the once-powerful industrialist whose empire has been under severe financial stress for years. Investigators are now delving into the due diligence processes followed by banks while disbursing loans to companies led by Anil Ambani. These firms include Reliance Communications, Reliance Housing Finance, and Reliance Commercial Finance. The probe agency suspects that not only were many of these loans improperly granted, but that large portions of the sanctioned amounts may have been diverted or misused.
Banks Under Scanner for Loan Approvals
The Enforcement Directorate has written to nearly 12-13 banks, including major players such as State Bank of India, Axis Bank, ICICI Bank, HDFC Bank, Punjab and Sind Bank, and UCO Bank. These banks have been asked to furnish detailed records about the process of loan sanctioning, the internal assessment protocols followed, and the timeline of defaults. Authorities are particularly interested in the documentation trail that led to the approval of credit facilities for Reliance Group firms.
Investigators are also likely to summon officials from several of these banks to answer questions regarding their roles in the disbursal of the loans. This includes queries about whether adequate risk assessments were conducted and if the banks took timely corrective action once the accounts began to show signs of stress. The ED aims to establish whether there was any negligence, complicity, or quid pro quo involved in the approval of the loans.
The inquiry has taken a serious turn as ED officials seek to identify whether the loans were part of a wider pattern of corporate misgovernance. The suspicion that bank executives may have overlooked red flags or even received improper inducements has prompted authorities to examine not only the borrowers but also the lenders.
Arrest Linked to Fake Guarantees and Alleged Diversion
Adding a new dimension to the case, the ED last week arrested Partha Sarathi Biswal, managing director of Biswal Tradelink Pvt Ltd, for allegedly providing fake guarantees worth over Rs 68 crore. These guarantees were reportedly issued on behalf of Reliance Power to secure loans, raising concerns about the legitimacy of the documentation relied upon by lenders.
This arrest is the first in the broader investigation into a suspected Rs 3,000-crore loan fraud involving Reliance Group companies. According to the ED’s findings so far, loans were extended to these companies between 2017 and 2019, during which time certain irregularities were flagged. One of the key concerns is that payments were made to YES Bank promoters around the time the loans were approved, suggesting the possibility of a reciprocal arrangement. This has further intensified suspicions of misconduct, including money laundering and kickbacks.
Investigators have uncovered evidence that raises questions about the actual usage of the loans, with substantial sums believed to have been diverted for purposes other than those stated in the loan applications. The ED has been trying to trace the movement of funds and identify ultimate beneficiaries of the transactions.
In July, the agency conducted a sweeping raid operation, targeting over 50 companies and individuals linked to the case. These searches aimed to gather documents, digital records, and other evidence that could support the investigation.
Meanwhile, a lookout circular has been issued against Anil Ambani, effectively preventing him from leaving the country while the investigation is underway. Though no direct accusations have been made against him personally in terms of criminal misconduct, the expanding nature of the probe and the evidence emerging from arrests and searches indicate that authorities are preparing to escalate the case further.
The ED’s actions come amid growing pressure on investigative agencies to crack down on corporate defaulters and recover taxpayer money lost due to bad loans. Anil Ambani’s Reliance Group, once seen as a cornerstone of India’s private sector growth, has over the years slipped into deep financial distress, prompting lenders and regulators to question the viability of its business model and the integrity of its financial disclosures.
The investigation now revolves around several core questions: Were the loans to Anil Ambani’s companies approved without sufficient due diligence? Were fake guarantees knowingly accepted? Did bank officials receive personal benefits for facilitating these loans? And finally, where exactly did the money go?
As the ED moves forward with questioning, arrests, and forensic audits, the spotlight remains firmly on the nexus between corporates and financial institutions—a nexus that, if proven unethical, may lead to one of the biggest corporate accountability showdowns in recent years.
