ED Seizes ₹7,500 Crore in Assets Linked to Anil Ambani Group Amid Money-Laundering Probe

The ED said the seizure was made under the Prevention of Money Laundering Act (PMLA) and follows a Central Bureau of Investigation (CBI) case alleging diversion and misuse of bank funds by several Reliance Group firms. The attached properties are valued at more than ₹7,500 crore, including the Navi Mumbai site estimated at ₹4,462.81 crore.

According to the agency, Reliance Communications Limited (RCOM) and its group companies secured loans worth ₹40,185 crore from domestic and foreign lenders between 2010 and 2012. Five banks later classified these accounts as fraudulent. Investigators allege that large portions of the borrowed sums were diverted to related parties, invested in mutual funds, or used to repay loans of other group entities—actions that violated the terms of the loan agreements.

The ED’s findings suggest that around ₹13,600 crore was used for “evergreening” loans, while ₹12,600 crore was routed to connected firms.

Another ₹1,800 crore was invested in fixed deposits and mutual funds before being channelled back into the group’s accounts. The agency also claims to have uncovered instances of fund siphoning through outward remittances and the misuse of bill discounting mechanisms.

Earlier rounds of attachment covered 42 properties worth ₹3,083 crore across several Reliance Group entities, including Reliance Commercial Finance Limited and Reliance Home Finance Limited. The latest additions bring the cumulative total of seized assets linked to the group to over ₹7,500 crore.

The ED alleges that the loans taken by the group’s companies were layered through complex financial transfers, creating the appearance of legitimate transactions while concealing the true movement of funds. It also cited “round-tripping” patterns and the use of shell entities to move money abroad.

The agency claims to have detected multiple irregularities in loans disbursed by Reliance Home Finance and Reliance Commercial Finance. Some loans were allegedly sanctioned within a single day without due diligence, while others were granted to companies with shared directors or auditors linked to the Reliance Group. Several borrowers, including Crest Logistics and Engineers, RPL Solar Power, and Worldcom Solutions, were accused of funnelling funds to Reliance Infrastructure Limited (RInfra) through intermediaries.

In one case, the ED said ₹40 crore from a highway project in Rajasthan was diverted via shell companies in Surat to Dubai, suggesting the use of an international hawala network estimated to exceed ₹600 crore.

Corporate Response:

Reliance Infrastructure, a listed company within the group, said in a stock exchange filing that the ED’s attachment would not affect its business operations or stakeholders. “Certain assets of the company have been provisionally attached by the ED for alleged violations under PMLA. There is no impact on the business operations, shareholders, employees or any other stakeholders,” the firm stated.

It further clarified that “Mr Anil D Ambani is not on the Board of Reliance Infrastructure Limited for more than 3.5 years.” Mr Ambani, once one of India’s most prominent industrialists, resigned from the board of Reliance Communications in 2019 after a series of financial setbacks for his group companies.

Context:

The latest ED action underscores growing regulatory scrutiny of high-profile corporate loan defaults in India, particularly those involving public-sector banks. Since 2016, Indian authorities have intensified investigations into large-scale financial irregularities under the PMLA and related anti-corruption statutes.

The Ambani-led Reliance Group, distinct from the conglomerate run by his elder brother Mukesh Ambani, has been under financial pressure for more than a decade following the collapse of its telecom and power businesses. Reliance Communications filed for bankruptcy in 2019, citing debts exceeding ₹45,000 crore.

The ED said it remains committed to recovering “proceeds of crime” and ensuring restitution to the rightful claimants. Further investigation into the matter is ongoing.