The Enforcement Directorate (ED) has issued a look out circular against Anil Ambani, the chairman of Reliance Group. This action is linked to an alleged loan fraud case worth ₹3,000 crore. Ambani is expected to appear before the ED on Tuesday. A look out circular prevents individuals from leaving India to avoid legal action. This development follows recent raids by the ED on July 24 at various locations connected to Ambani’s businesses.
The investigation focuses on loans given by Yes Bank Ltd. to multiple Reliance Group companies between 2017 and 2019. The ED suspects that some of these funds were illegally diverted. Furthermore, investigators are looking into a potential quid pro quo. They allege that promoters of Yes Bank may have received financial benefits shortly before the loans were approved.
In response to the situation, Reliance Power and Reliance Infrastructure released statements on July 26. They claimed that the ED’s actions had “absolutely no impact” on their business operations or financial health.
The investigation escalated after the State Bank of India (SBI) declared the accounts of Reliance Communications and Anil Ambani as fraudulent in June 2025. SBI notified the Reserve Bank of India and filed a complaint with the Central Bureau of Investigation (CBI). As part of the ongoing investigation, officials have seized important documents and digital evidence from offices in Mumbai and Delhi.
Earlier, the Securities and Exchange Board of India (SEBI) barred Anil Ambani and several senior executives from the securities market for five years. They also imposed a financial penalty due to alleged fund diversion from Reliance Home Finance.
The ED’s investigation is part of a larger effort to investigate suspected misuse of public funds through shell companies. Investigators are probing several group companies associated with Ambani, including Reliance Infrastructure (R Infra).
Reports indicate that the ED is looking into claims of over ₹17,000 crore in loan diversions by various companies in the group. Allegations suggest that R Infra disguised funds as inter-corporate deposits (ICDs) to other Reliance Group companies through a firm named CLE. This was reportedly done to avoid approval from shareholders and audits.
A spokesperson for Reliance Group stated that allegations regarding the diversion of ₹10,000 crore to an undisclosed party are outdated. They clarified that their financial statements indicate an exposure of only around ₹6,500 crore. Reliance Infrastructure previously disclosed this issue on February 9, 2025.
The spokesperson also explained that the company had reached a settlement to recover its full exposure of ₹6,500 crore through mediation proceedings.
Ambani has not been on the board of Reliance Infrastructure for over three years, as of March 2022. The ED is also investigating claims of illegal loan diversion amounting to ₹3,000 crore from Yes Bank to Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Ltd (RCFL) between 2017 and 2019. Officials noted that just prior to these loans being granted, funds were transferred into the accounts of Yes Bank promoters.
In a related case, the ED recently raided a company in Odisha linked to a fake bank guarantee racket. This company allegedly provided false assurances worth ₹68 crore to a group company. The spokesperson for the group stated that their company has been a victim of fraud and forgery. They have made the necessary disclosures to the stock exchanges regarding these issues.
As the investigation continues, the implications for Anil Ambani and his companies remain significant. The ED’s actions highlight serious concerns regarding financial practices within major corporations in India. Stakeholders are closely monitoring the situation as it develops.