ED Attaches Rs 510 Crore Assets in Anil Ambani Group Bank Fraud Probe

The Enforcement Directorate (ED) has attached assets worth Rs 510 crore, including two chartered aircraft, as part of its money laundering investigation into alleged bank fraud involving the Reliance Anil Ambani Group (RAAG). The action highlights concerns over the alleged diversion of public funds borrowed from banks and financial institutions and its wider implications for India's banking system.

The latest provisional attachment order, issued under the Prevention of Money Laundering Act (PMLA), covers two separate cases involving Reliance group companies. The first concerns alleged fraud of Rs 263.05 crore involving Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), while the second involves an alleged Rs 247.12 crore fraud linked to Reliance Communications Ltd (RCOM).

The attached assets in the RCOM case include two chartered aircraft — a Dassault Falcon 2000 and an Embraer — six land parcels and an office premises in Maharashtra. In the RHFL and RCFL cases, the agency has attached two windmills in Tamil Nadu, bank balances, fixed deposits and investments.

The ED alleges that funds obtained from banks were diverted through various entities, misused to protect corporate assets through insolvency proceedings and transferred to offshore tax havens. It further claims that a significant portion of the money benefited promoters and their families. The agency has arrested 10 individuals, filed six chargesheets and initiated a separate investigation under the Foreign Exchange Management Act (FEMA).

The case also highlights the wider consequences of corporate loan fraud. Large defaults can increase banks' non-performing assets (NPAs), weaken profitability and restrict lending to small businesses, farmers and individuals. Losses at public-sector banks can also create pressure for government recapitalisation, indirectly affecting taxpayers and public spending.

However, India's banking system has improved its asset quality, with the gross NPA ratio of scheduled commercial banks declining to 2.15 per cent in September 2025.

With the latest attachment, the total value of assets attached and seized in investigations involving the group has reached Rs 23,100 crore. The proceedings underline the importance of transparent corporate lending, monitoring loan utilisation and recovering public money.