The Enforcement Directorate (ED) on Wednesday carried out raids at over 35 premises and 50 companies linked to Anil Ambani's Reliance Group (RAAGA Companies) in connection with a money laundering probe related to the Yes Bank loan fraud case.
The searches follow two FIRs registered by the CBI and inputs shared by agencies including SEBI, the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).
According to the ED, preliminary investigations show that loans worth around Rs 3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell firms and other group entities. Investigators have also found evidence suggesting possible bribery of Yes Bank officials, including its promoter.
The agency flagged serious lapses in Yes Bank’s approval process, including back-dated credit documents, absence of due diligence, and loans given to firms with weak financials and common directors. It also found violations of loan terms, evergreening of accounts, and instances where disbursal occurred on the same day as or before loan approvals.
The ED said over 50 companies and 25 individuals are under the scanner. SEBI has also submitted findings related to Reliance Home Finance Ltd (RHFL), which saw its corporate loan book more than double within a year, raising concerns about irregularities and process violations.
The searches are being conducted under Section 17 of the Prevention of Money Laundering Act (PMLA).
The searches follow two FIRs registered by the CBI and inputs shared by agencies including SEBI, the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).
According to the ED, preliminary investigations show that loans worth around Rs 3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell firms and other group entities. Investigators have also found evidence suggesting possible bribery of Yes Bank officials, including its promoter.
The agency flagged serious lapses in Yes Bank’s approval process, including back-dated credit documents, absence of due diligence, and loans given to firms with weak financials and common directors. It also found violations of loan terms, evergreening of accounts, and instances where disbursal occurred on the same day as or before loan approvals.
The ED said over 50 companies and 25 individuals are under the scanner. SEBI has also submitted findings related to Reliance Home Finance Ltd (RHFL), which saw its corporate loan book more than double within a year, raising concerns about irregularities and process violations.
The searches are being conducted under Section 17 of the Prevention of Money Laundering Act (PMLA).
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