India’s Enforcement Directorate (ED), the country’s top financial crime investigation agency, has frozen assets worth ₹75 billion ($853 million) linked to companies belonging to the Reliance Anil Ambani Group (R-Group). The move comes as part of an extensive money-laundering probe into the alleged diversion and misuse of loans obtained from YES Bank.
According to an official statement, the ED’s action targets properties and assets associated with Reliance Communications Ltd and its affiliate companies. The investigation concerns loans amounting to over $569 million and alleged fund diversions exceeding ₹136 billion between 2017 and 2019. Authorities claim these funds were “fraudulently diverted” through a series of shell companies and used for unauthorized purposes, violating loan agreements.
Fraudulent Diversion and Loan Evergreening
The agency alleged that the Reliance Group companies engaged in “loan evergreening” — a practice where new loans are issued to repay existing ones, often concealing financial distress. The ED’s findings revealed that public funds, including loans sanctioned by YES Bank, were redirected through non-transparent financial channels and related-party transactions.
Investigators claim that loans taken by one company were used to repay loans from other entities, transfer funds to affiliates, or invest in mutual funds, all in contravention of loan terms. The ED also alleged that bribes were paid to YES Bank officials prior to loan disbursements, according to sources familiar with the investigation.
High-Value Assets Under the Scanner
The agency has blocked transactions on several high-value properties across Mumbai, Delhi, and Chennai, including Anil Ambani’s family residence in Mumbai. The freeze covers residential units, commercial plots, and land parcels, preventing their sale or transfer while the investigation continues.
Reliance Group Responds
In response, Reliance Infrastructure, one of the conglomerate’s flagship companies, stated that the ED’s move would not affect its operations, employees, or shareholders, emphasizing that the group remains committed to transparency and compliance. Other companies under the R-Group umbrella have yet to comment, while YES Bank declined to issue a statement regarding the development.
A Deepening Crisis for Anil Ambani
The younger brother of billionaire Mukesh Ambani, Anil Ambani has faced mounting financial troubles in recent years following the collapse of his telecom empire and ongoing debt disputes. The latest ED action intensifies the pressure on the embattled industrialist, whose group companies have struggled to recover from mounting liabilities and allegations of financial irregularities.
The ED’s probe adds another layer to India’s broader crackdown on corporate fraud and banking misconduct, as authorities aim to strengthen financial discipline and accountability in the private sector.
As investigations continue, the Reliance Anil Ambani Group remains under close scrutiny for its alleged misuse of public funds, marking yet another dramatic turn in one of India’s most high-profile corporate sagas.
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