ED raids premises linked to Anil Ambani in Yes Bank loan fraud probe

The Enforcement Directorate (ED) on Thursday raided several locations connected to Anil Ambani as part of its ongoing investigation into the Yes Bank loan fraud case. ED's action comes after State Bank of India (SBI) decided to classify telecom company Reliance Communications as 'fraud' and will report its former director, Anil Ambani, to the Reserve Bank of India (RBI).

The ED is currently examining over 50 companies and 25 individuals believed to be part of the network. Preliminary findings indicate that the promoters of Yes Bank allegedly received funds in their personal accounts shortly before sanctioning large loans to Reliance Anil Ambani Group companie, pointing to a potential quid pro quo.

The ED suspects that bribes were paid to bank officials and that key loan approval documents, such as Credit Approval Memorandums (CAMs), were backdated. Investigations further reveal that investments were proposed without any due diligence, flouting the bank's internal credit policies.

The crackdown follows two FIRs filed by the CBI and information shared by Sebi, the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).

Loans worth around ₹3,000 crore issued by Yes Bank between 2017 and 2019 are under scrutiny for alleged diversion to shell companies and group-linked entities. It is also suspected that some Yes Bank executives may have received kickbacks during the loan sanctioning process.

Irregularities flagged by the ED include loans given to financially unstable companies, backdated documentation, and disbursals that occurred even before formal approval. Evergreening of bad loans and overlapping directorships across borrowing firms have also raised red flags.

In 2020, the ED began probing ₹12,500–12,800 crore in loans given by Yes Bank to Anil Ambani’s companies. This followed Yes Bank’s collapse and a money laundering case against its founder Rana Kapoor, accused of taking ₹4,300 crore in kickbacks.

When questioned, Ambani denied any wrongdoing, saying the loans were secured and had no link to Kapoor.