The Enforcement Directorate launched a comprehensive crackdown on Thursday, conducting simultaneous raids across 35 locations connected to Anil Ambani's Reliance Anil Dhirubhai Group as part of an extensive money laundering investigation. The operation targeted approximately 50 companies and over 25 individuals associated with the conglomerate under the Prevention of Money Laundering Act.

The financial crimes investigation agency has assumed control of two cases originally registered by the Central Bureau of Investigation on September 19, 2022, focusing on suspicious loans disbursed by Yes Bank to Reliance Home Finance Limited and Reliance Commercial Finance Ltd. Former Yes Bank chairman Rana Kapoor has been specifically named in both cases and remains under active scrutiny.

ED officials revealed that the investigation has expanded significantly beyond the initial CBI cases, incorporating intelligence and evidence shared by multiple regulatory bodies including the National Housing Bank, Securities and Exchange Board of India, National Financial Reporting Authority, and Bank of Baroda. This collaborative approach has enabled investigators to piece together what they describe as a sophisticated financial fraud scheme.

According to ED sources, preliminary findings have exposed a meticulously planned operation designed to systematically divert public funds through deceptive practices targeting banks, shareholders, investors, and various public institutions. The investigation has also uncovered evidence suggesting bribery of banking officials, with particular focus on the Yes Bank founder's alleged involvement in these corrupt practices.

The probe has revealed the illegal diversion of approximately ₹3,000 crore from Yes Bank between 2017 and 2019, with investigators discovering a troubling pattern where Yes Bank promoters allegedly received payments in their associated entities just before loan approvals were granted to Ambani group companies. This timing has raised serious questions about the integrity of the lending process and potential quid pro quo arrangements.

ED investigators have identified numerous procedural violations in Yes Bank's loan approval processes for Reliance Anil Ambani Group companies. These include the backdating of Credit Approval Memorandums, investment proposals made without proper due diligence or credit analysis, and flagrant violations of the bank's established credit policies.

The investigation has also uncovered systematic violations of loan terms, with funds being illegally diverted to various group companies and shell entities rather than being used for their stated purposes. This diversion appears to have been part of a broader strategy to obscure the true destination of borrowed funds.

Multiple red flags identified during the probe paint a picture of reckless lending practices and potential fraud. These warning signs include loans granted to financially weak entities without proper documentation, inadequate due diligence procedures, borrowers sharing common addresses and directors, systematic diversion of funds to promoter group entities, and the artificial extension of loan terms to avoid defaults.

Additional concerning practices discovered include loans being disbursed on the same day as application submission, fund releases occurring before formal sanctions were approved, and deliberate misrepresentation of financial statements to secure approvals.

The Securities and Exchange Board of India has also contributed its findings to the ED investigation, particularly regarding Reliance Home Finance Limited's operations. Market regulators have flagged suspicious patterns in the company's lending practices that align with the broader money laundering allegations.

One of the most striking discoveries involves the dramatic expansion of RHFL's corporate loan portfolio, which surged from ₹3,742.60 crore in FY 2017-18 to ₹8,670.80 crore in FY 2018-19. This sudden increase has drawn particular attention from investigators who are examining whether this growth was achieved through legitimate business expansion or fraudulent means.

The Reliance ADAG group has been contacted for comment and has indicated they will issue a formal statement regarding the ongoing investigation. The raids represent one of the most significant enforcement actions against the Ambani group in recent years and could have far-reaching implications for both the conglomerate and the broader financial sector's lending practices.