Key Points:
- Enforcement Directorate provisionally attached over 40 properties worth ₹3,084 crore belonging to Reliance Anil Ambani Group through four separate orders issued on October 31, 2025, under PMLA Section 5(1)
- Seized assets include Anil Ambani’s iconic Pali Hill residence in Mumbai’s Bandra West, Reliance Centre in New Delhi, and properties across Delhi, Noida, Ghaziabad, Pune, Thane, Hyderabad, Chennai, Kancheepuram, and East Godavari
- Case involves alleged diversion and laundering of public funds raised by Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) between 2017-2019
- Yes Bank invested ₹2,965 crore in RHFL and ₹2,045 crore in RCFL instruments, which turned non-performing by December 2019, leaving ₹1,353.50 crore outstanding for RHFL and ₹1,984 crore for RCFL
- ED investigation revealed funds from Reliance Nippon Mutual Fund were illegally routed through Yes Bank exposures to Anil Ambani Group companies, violating SEBI’s conflict of interest guidelines
- Separate probe into Reliance Communications Ltd (RCOM) alleges diversion of over ₹13,600 crore, with ₹12,600 crore funneled to connected parties and ₹1,800 crore invested in fixed deposits/mutual funds before being rerouted
- ED found “intentional and consistent control failures” including same-day loan sanctions and disbursements, waived field investigations, blank documents, and unregistered securities
- Total probe involves financial irregularities and loan diversions exceeding ₹17,000 crore across multiple Reliance Group companies
Mumbai: The Enforcement Directorate has delivered a major blow to industrialist Anil Ambani’s business empire by provisionally attaching assets valued at approximately ₹3,084 crore, marking one of the largest asset seizures in recent Indian corporate history. The agency issued four separate provisional attachment orders on Friday, October 31, 2025, under Section 5(1) of the Prevention of Money Laundering Act (PMLA), targeting properties owned by various entities of the Reliance Anil Ambani Group.
Pali Hill Residence and Prime Properties Seized
Among the most prominent assets attached is Anil Ambani’s family residence located at CTS No. C/1316B/1/1, Plot 43, Nargis Dutt Road, Pali Hill in Mumbai’s upscale Bandra West neighborhood. The seizure also encompasses the Reliance Centre situated on Maharaja Ranjit Singh Marg in New Delhi, which serves as a key office location for the group. The attached properties span multiple asset classes, including office spaces, residential units, and land parcels spread across ten cities—Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, Chennai, Kancheepuram, and East Godavari.
Comprehensive List of Attached Properties
The four ED attachment orders collectively cover over 40 properties belonging to Reliance Infrastructure Ltd, Reliance Communications, and other linked entities. Notable properties include the Nagin Mahal offices in Churchgate, Mumbai; multiple flats in BHA Millennium Tower, Noida; apartments in Camus Capri Apartments, Hyderabad; land parcels in East Godavari; and 29 flats in Chennai’s Adyar and OMR-Kottivakkam areas valued at ₹109.61 crore. Additional properties in Pune, Thane, and Goa are also part of the provisional attachment, though the detailed full list of all 40 properties has not been publicly released.
Yes Bank Investment Turned Non-Performing
The case centers on the alleged diversion and laundering of public funds raised by two Reliance Group financial companies—Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). According to ED’s investigation, during the period between 2017 and 2019, Yes Bank invested a combined ₹5,010 crore in these entities—₹2,965 crore in RHFL instruments and ₹2,045 crore in RCFL instruments through various financial instruments.
₹3,337 Crore Remained Outstanding
By December 2019, these substantial investments had turned “non-performing,” becoming toxic assets on Yes Bank’s books. At that critical juncture, ₹1,353.50 crore remained outstanding against RHFL and ₹1,984 crore against RCFL, totaling approximately ₹3,337.50 crore in non-performing investments. This massive default contributed significantly to Yes Bank’s subsequent financial crisis, which ultimately required a rescue operation by the State Bank of India and other institutions.
SEBI Guidelines Allegedly Violated
The ED’s investigation uncovered a sophisticated scheme that allegedly violated regulatory frameworks governing mutual fund investments. According to the agency, direct investment by the erstwhile Reliance Nippon Mutual Fund into Anil Ambani Group’s financial companies was not legally permissible under the Securities and Exchange Board of India’s (SEBI) mutual fund conflict of interest framework. This regulatory prohibition was designed to prevent self-dealing and protect the interests of ordinary mutual fund investors.
Indirect Routing Through Yes Bank Exposures
In what the ED characterizes as a deliberate violation of SEBI guidelines, funds invested by the general public in Reliance Nippon Mutual Fund were allegedly routed indirectly through Yes Bank’s exposures, which ultimately reached Anil Ambani Group entities. The probe revealed that these funds were channeled through Yes Bank’s exposures to RHFL and RCFL, which in turn extended loans to entities linked to the Reliance Anil Ambani Group. The ED’s fund flow analysis indicated a pattern of diversion, on-lending to group-linked entities, and what the agency terms “ultimate siphoning off” of public money.
General Purpose Corporate Loans Diverted
A significant finding of the investigation was that substantial portions of General Purpose Corporate Loans (GPCLs) sanctioned by RHFL and RCFL ended up in various Reliance Group accounts. This pattern of fund flow suggests systematic diversion of borrowed capital away from its stated business purposes and toward other group entities, potentially enriching promoters at the expense of lenders and investors.
Shocking Control Failures Detected
The ED has identified what it describes as “intentional and consistent control failures” during the loan disbursal process at RHFL and RCFL. In several instances, loans were sanctioned, processed, and even disbursed on the same day—in some cases even before the formal loan application was filed with the company. This extraordinary timeline suggests that loan approvals were predetermined, with documentation being prepared retroactively to create a paper trail.
Due Diligence Completely Bypassed
Standard banking practices require thorough due diligence before disbursing large corporate loans, but the ED found that field investigations and personal discussions with borrowers were systematically waived in these cases. Critical documents were left blank or overwritten, borrowers had weak financials or negligible business operations, and securities offered as collateral were either left unregistered or remained incomplete. These lapses, which would ordinarily trigger red flags and halt loan processing, were ignored, leading the ED to conclude they were “intentional and consistent control failures” rather than isolated mistakes.
Backdated Documents and Bribery Allegations
Investigators have uncovered evidence suggesting that key loan approval documents, including credit approval memorandums (CAMs), were backdated to create a false appearance of compliance with internal procedures. The ED also suspects that bribes were paid to bank officials to facilitate the sanctioning of questionable loans. Initial findings suggest that promoters of Yes Bank may have received funds in their personal accounts shortly before sanctioning large loans to companies in the Reliance Anil Ambani Group, indicating possible quid pro quo arrangements.
RCOM Probe Reveals ₹13,600 Crore Diversion
In a parallel investigation, the ED has intensified its probe into Reliance Communications Ltd (RCOM) and related companies, where it alleges loan fraud and fund diversions totaling over ₹13,600 crore. According to the agency’s findings, ₹12,600 crore was diverted to connected parties within the group ecosystem, while an additional ₹1,800 crore was initially invested in fixed deposits and mutual funds before being liquidated and rerouted to other group entities.
Massive Bill Discounting Misuse
The ED’s investigation has also exposed what it characterizes as “huge misuse” of bill discounting mechanisms to funnel funds among related entities within the Reliance Group. Bill discounting, a legitimate short-term financing tool, appears to have been weaponized to create circular transactions that moved money between group companies without genuine underlying business purposes. This technique allowed funds to be shifted around the group while creating the appearance of normal business operations.
Larger ₹17,000 Crore Financial Irregularities Case
The latest asset attachment forms part of a wider probe into alleged financial irregularities and loan diversions exceeding ₹17,000 crore involving multiple Reliance Group companies, including Reliance Infrastructure. The ED has already filed a chargesheet related to fraudulent transactions between Reliance Group companies, Yes Bank, and firms associated with former Yes Bank CEO Rana Kapoor’s family.
August 2025 Questioning of Anil Ambani
Anil Ambani was questioned by the ED in August 2025 as part of this ongoing investigation. Prior to that, on July 24, 2025, the agency conducted extensive searches at 35 premises linked to 50 companies and 25 individuals, including senior executives from the Reliance Anil Ambani business group. These raids were part of the agency’s efforts to gather documentary evidence and trace the flow of funds through the complex web of group entities.
SBI Declares Reliance Communications as “Fraud”
The State Bank of India (SBI), India’s largest public sector bank, has classified Reliance Communications as a “fraud” and decided to report the matter, along with Anil Ambani’s name, to the Reserve Bank of India (RBI). This classification has serious implications, as it triggers mandatory reporting requirements and can impact the ability of the borrower and its promoters to access banking credit in the future.
Same-Day Loan Sanctions Raise Red Flags
The ED’s investigation has uncovered an alarming pattern where loans worth around ₹3,000 crore issued by Yes Bank between 2017 and 2019 were sanctioned with minimal scrutiny. Several investments were made without proper due diligence, in blatant violation of the bank’s internal credit policies. The agency is also probing whether some Yes Bank executives received kickbacks during the loan sanctioning process, which would explain why normal safeguards were systematically bypassed.
ED Continues Tracing Proceeds of Crime
The Enforcement Directorate has stated that it continues to trace the proceeds of crime and secure attachments of additional properties as the investigation progresses. The agency emphasized that these recoveries would ultimately benefit the general public whose funds were allegedly diverted and laundered through this elaborate scheme. The ED has clarified that the current attachments are provisional in nature and will be subject to adjudication proceedings under the PMLA.
Reliance Group’s Response
So far, the Reliance Group has not issued any official statement specifically addressing the November 2025 asset seizure. However, in response to earlier allegations, the Reliance Group had denied any wrongdoing, calling the accusations “baseless and speculative”. The group previously dismissed a Cobrapost investigative report alleging major banking fraud as “a malicious, baseless, and motivated campaign”.
Historical Context of Financial Troubles
The Reliance Anil Ambani Group, which was once valued at over ₹1.5 lakh crore at its peak in 2008, has faced mounting financial difficulties over the past decade. The group’s telecom venture, Reliance Communications, collapsed under massive debt, eventually filing for bankruptcy. Anil Ambani himself faced the threat of imprisonment in 2019 when the Supreme Court held him in contempt for non-payment of dues to Ericsson, a situation that was resolved only after his elder brother Mukesh Ambani’s Reliance Industries stepped in to clear the dues.
Implications for Public Sector Banks
The alleged fraud has significant implications for India’s banking sector, particularly public sector banks that had substantial exposure to Reliance Group companies. The provisionally attached assets, if ultimately forfeited following adjudication proceedings, could potentially provide some recovery for banks and financial institutions that suffered losses due to the alleged diversions. However, given the scale of alleged diversions compared to the value of attached assets, complete recovery appears unlikely.
The ED’s action represents one of the most significant enforcement measures against a major Indian corporate group in recent years and signals the agency’s determination to pursue high-profile cases of alleged financial fraud and money laundering to their conclusion.
