Anil Ambani Faces ED Investigation in Major Bank Fraud Case
Anil Ambani's Appearance Before Enforcement Directorate
On Thursday, February 26, businessman Anil Ambani reported to the Enforcement Directorate (ED) at 10:30 am as part of an investigation into a significant money laundering case linked to a bank fraud totaling Rs 40,000 crore. The ED's inquiry was prompted by a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) under various sections of the Indian Penal Code and the Prevention of Corruption Act against Reliance Communications (RCOM), Anil Ambani, and others.
Between 2010 and 2012, RCOM and its affiliated companies secured loans from both domestic and international lenders, accumulating an outstanding debt of Rs 40,185 crore. Nine banks have classified the loan accounts of the group as fraudulent. The ED's investigation uncovered that loans obtained by one entity from a bank were misused to repay loans from other banks, transferred to related parties, and invested in mutual funds, violating the loan sanction conditions.
Specifically, over Rs 13,600 crore was misappropriated for loan evergreening, while more than Rs 12,600 crore was redirected to associated parties, and over Rs 1,800 crore was invested in fixed deposits and mutual funds, which were largely liquidated to benefit group entities. The ED also identified significant misuse of bill discounting to funnel funds to related parties, with some loans being siphoned off abroad through foreign remittances.
On the same day, the ED seized Anil Ambani's residence, valued at Rs 3,761 crore, bringing the total assets attached to over Rs 15,000 crore. Earlier in January, the agency arrested Puneet Garg, the former Managing Director of RCOM. The investigation revealed that Garg, who held senior managerial and directorial roles at RCOM from 2001 to 2025, was deeply involved in the acquisition, concealment, and dissipation of proceeds from the bank fraud.
It was discovered that the proceeds were funneled through various foreign subsidiaries and offshore entities of RCOM. Notably, funds were used to purchase a luxury condominium in Manhattan, New York, which was fraudulently sold by Garg during RCOM's Corporate Insolvency Resolution Process (CIRP). The sale proceeds of $8.3 million were transferred from the USA under the pretense of a sham investment arrangement with a Dubai-based entity linked to an individual from Pakistan, without the knowledge or consent of the Resolution Professional.
Additionally, part of the diverted funds, which were public money borrowed by RCOM, were used for Garg's personal expenses, including payments for his children's overseas education. The ED has also summoned Tina Ambani, Anil Ambani's wife, although she has yet to participate in the investigation.