ED issues lookout notice against Anil Ambani in Rs 3,000-crore loan fraud case

In fresh trouble for Reliance Group Chairman and Managing Director Anil Ambani, the Enforcement Directorate on Friday issued a lookout circular against him in connection with a suspected Rs 3,000 crore loan fraud and money laundering case.

Anil Ambani can now no longer travel outside India without court permission. This comes after a series of crackdowns on his business entities, allegations of fraud against his firms, and a summons issued by a federal agency.

A preliminary probe by the ED suggests that companies linked to Anil Ambani engaged in a carefully designed scheme to divert public funds and mislead financial institutions. This reportedly involved illegal diversion of loans worth around Rs 3,000 crore from Yes Bank between 2017 and 2019.

Officials say that just before the loan disbursements, money was received by concerns linked to the promoters



of Yes Bank. This has raised questions of possible bribery and quid-pro-quo arrangements between bank officials and borrower firms. The ED is now investigating the alleged nexus between Yes Bank promoters and Anil Ambani-linked companies.

Gross violations in Yes Bank’s loan approvals were flagged. Sources in the ED said that back-dated Credit Approval Memorandums (CAMs), investments made without due diligence or credit analysis, and decisions taken in violation of the bank’s own credit policy are among the irregularities found.

Days after raiding several locations in Mumbai linked to the Reliance Group chairman, the federal agency called him for questioning on August 5.

In June, the State Bank of India (SBI) classified the loan account of Reliance Communications as "fraud" and reported its former director Anil Ambani to the Reserve Bank of India (RBI).