Money Laundering Probe: ED Alleges Financial Irregularities Concerning Loans from Yes Bank


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The Enforcement Directorate (ED) has reportedly attached additional assets worth more than Rs. 1400 crores in a money laundering case involving the Reliance Group Chairman, Anil Ambani. The Federal investigative agency, under the Foreign Exchange Management Act (FEMA), had previously attached assets worth Rs. 7,500 crore. 

Total Attachment Nears Rs. 9,000 Crore Mark

The investigation falls under the Prevention of Money Laundering Act (PMLA). The newly seized properties are spread across multiple locations including Navi Mumbai, Chennai, Pune, and Bhubaneswar. This brings the cumulative attachment in the ongoing probe of nearly Rs. 9,000 crore. 

The central agency had previously seized assets worth an estimated Rs. 7,500 crore. This demonstrates the ED's continuing focus on financial crime cases. The agency aims to secure all assets connected to the alleged offenses.

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Focus on Alleged Diversion of Public Funds and Loan Fraud

The probe initiated by the Enforcement Directorate mainly focuses on alleged financial irregularities involving loan fraud and the diversion of public funds. The ED has been investigating multiple Reliance group companies. Some of these include Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). 

The law enforcement and economic intelligence agency alleges that loans taken by one entity were wrongly used. It further mentioned that these loans were reportedly used to repay loans of other companies.

Funds were also transferred to related parties and invested in mutual funds. The agency states these actions violated the loan sanction conditions. Additionally, the probe revealed that RHFL and RCFL received over Rs. 10,000 crore in public funds.

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A large part of this sum was received from Yes Bank. However, the latest investigation has revealed a pattern similar to mala fide actions. This included pre-decided beneficiaries, manufactured paperwork, waived controls, and disbursals that came ahead of approvals.