ED Summons Anil Ambani on August 5 Amid New Raids in Odisha and Bengal

Anil Ambani Summoned by ED in ₹17,000 Crore Loan Fraud Case; Fresh Raids in Odisha, Bengal.

Reliance Group chairman Anil Ambani has been summoned by the Enforcement Directorate (ED) for questioning in connection with an alleged ₹17,000 crore loan fraud case. The industrialist has been asked to appear at the ED headquarters in New Delhi on August 5.

The probe, conducted under the Prevention of Money Laundering Act (PMLA), has already seen the agency search over 35 locations in Mumbai linked to Ambani’s Reliance Group. These searches spanned nearly 50 companies and 25 individuals.

In a parallel investigation, the ED on Thursday carried out fresh raids in Odisha and West Bengal in connection with a fake bank guarantee case. The agency claims that a contract awarded to one of Ambani’s firms was secured using forged guarantees issued by Odisha-based M/s Biswal Tradelink Pvt. Ltd.

Three premises linked to Biswal Tradelink and its directors in Bhubaneswar, as well as a related associate in Kolkata, were searched. ED alleges that the firm issued fake bank guarantees for an 8% commission and also raised bogus commission bills for services rendered to Reliance Group companies.

Investigators have uncovered multiple undeclared bank accounts and suspicious transactions amounting to crores of rupees across these entities.

SEBI Probe Flags Massive Diversion of Funds
Adding to the mounting scrutiny, the Securities and Exchange Board of India (SEBI) has submitted its findings from a separate investigation to the ED, the National Financial Reporting Authority (NFRA), and the Insolvency and Bankruptcy Board of India (IBBI).

SEBI’s report alleges that Reliance Infrastructure (R Infra) diverted nearly ₹10,000 crore via a little-known firm, CLE Pvt. Ltd., which was not disclosed as a related party. The diverted funds were masked as inter-corporate deposits (ICDs), reportedly benefiting entities tied to the promoter group.

According to SEBI, from FY13 to FY23, R Infra routed 25% to 90% of its total assets to CLE in the form of ICDs, equity investments, and guarantees—despite CLE being marked as financially weak. Bank records, board meeting minutes, and official email communications link CLE directly to the Reliance ADA Group. Bank documents submitted to Yes Bank also identified Reliance Infra as CLE’s promoter.

As of March 31, 2022, the total exposure stood at ₹8,302 crore. R Infra is reported to have written off ₹10,110 crore between FY17 and FY21, citing impairments and valuation losses.

A source close to Reliance Group told The Economic Times that the group had already disclosed the matter publicly on February 9 and challenged SEBI’s estimate. The source said the exposure was ₹6,500 crore, not ₹10,000 crore, and that the company is seeking recovery through the Bombay High Court after undergoing mediation under a retired Supreme Court judge.

Meanwhile, the power distribution companies in Odisha, which form part of the probe, remain operational, and the matter is pending adjudication.