ED Raids Over 35 Sites in RAAGA Money Laundering Probe, Reliance Group Denies Allegations

New Delhi, July 25, 2025: The Enforcement Directorate (ED) on Thursday launched a widespread search operation at more than 35 locations across the country in connection with an ongoing money laundering investigation involving companies under the Reliance Anil Ambani Group (RAAGA Companies). The searches, carried out under Section 17 of the Prevention of Money Laundering Act (PMLA), covered over 50 companies and more than 25 individuals believed to be connected to the case.

The probe agency revealed that the investigation stems from earlier FIRs registered by the Central Bureau of Investigation (CBI), as well as key information provided by institutions like the National Housing Bank, the Securities and Exchange Board of India (SEBI), the National Financial Reporting Authority (NFRA), and the Bank of Baroda. The ED claims to have uncovered a sophisticated and fraudulent scheme that resulted in the illegal diversion of public funds, allegedly involving banks, shareholders, investors, and financial institutions.

Reliance Power and Reliance Infrastructure both part of the Reliance ADA Group responded with formal statements denying any involvement. The companies stated they are independent, publicly listed entities with no financial or business links to Reliance Communications (RCOM) or Reliance Home Finance Limited (RHFL), which are at the center of the allegations. The companies emphasized that Anil D. Ambani is not on the board of either Reliance Power or Reliance Infrastructure, and therefore any legal action against RCOM or RHFL has no bearing on their governance or operations.

The ED’s investigation further revealed that approximately ₹3,000 crore was allegedly diverted illegally from Yes Bank between 2017 and 2019. Suspicion of quid pro quo arose after financial transfers were made to entities linked to the promoters of Yes Bank shortly before the loans were sanctioned. Investigators noted gross violations of internal banking policies, including backdated Credit Approval Memorandums (CAMs) and loans cleared without proper due diligence.

Additionally, strong accusations have emerged against RCOM for allegedly committing loan fraud exceeding ₹14,000 crore. The State Bank of India (SBI) has reportedly classified this as “fraudulent” and is preparing to lodge a formal complaint with the CBI. Canara Bank is also said to have been defrauded of ₹1,050 crore. In another significant claim, ED sources allege that Reliance Infrastructure diverted ₹10,000 crore through an undisclosed related party identified only as “C Company,” using defunct power distribution companies (DISCOMs) for settlements and seeing little recovery.

However, company sources have firmly rejected these charges, describing the allegations as misrepresented and related to transactions more than eight years old. They clarified that both RCOM and RHFL are no longer part of the Reliance Group. The sources also accused SBI of violating principles of natural justice by denying Anil Ambani a personal hearing and withholding crucial documents.

The investigation continues as ED officials analyze large volumes of financial data, with the potential for more revelations and possible arrests in the coming weeks.