₹3K-cr 'fraud': ED raids Anil Ambani firms

The Enforcement Directorate (ED) on Thursday carried out searches at over 35 locations in Mumbai linked to industrialist Anil Ambani, as part of a money laundering probe into an alleged ₹3,000-crore bank loan fraud involving companies of the Reliance Anil Dhirubhai Ambani Group (RAAGA).

- Mahender Singh Manral

The central agency said it is searching 50 companies and 25 individuals under the Prevention of Money Laundering Act (PMLA).

The ED is primarily investigating allegations of illegal diversion of loans worth around 3,000 crore, disbursed by Yes Bank to Anil Ambani's group companies between 2017 and 2019.

It is also examining whether there was a quid pro quo involved in the loan-specifically, if bribes were paid to bank officials, including Yes Bank promoters.

The central agency's probe has also allegedly found violations in Yes Bank's loan approvals to RAAGA companies, including backdated credit approval memorandums and proposals for investments made without any due diligence or credit analysis -- violations of the bank's credit policy, among other issues."...loans were given to entities with weak financials, no proper documentation of loans, no due diligence, borrowers ED searches multiple locations linked to Anil Ambani in 'bank loan fraud' probe have common addresses, common directors, diversion of loans to promoter group entities, evergreening of GPC loans, loans onward lent on same date, loans disbursed on same date as date of application, loans disbursed prior to sanction, misrepresentation of financials," said a source. "In violation of the loan terms, these loans were further diverted to many group companies and shell companies," the source said.