The Enforcement Directorate (ED) has initiated an extensive probe into Reliance Home Finance Ltd (RHFL), a financial services arm of the Anil Ambani-led Reliance Group, for the alleged diversion and write-off of ₹7,000 crore in loans extended to entities linked to the group. The total amount under scrutiny for possible diversion stands at ₹12,000 crore, and the investigation has brought several group companies and individuals under the scanner.
The probe, supported by agencies including the National Financial Reporting Authority (NFRA), the Central Bureau of Investigation (CBI), the Securities and Exchange Board of India (SEBI), and the National Housing Bank (NHB), was triggered following a SEBI report that flagged irregular transactions and fund movements within RHFL. According to the report, RHFL had allegedly implemented a fraudulent scheme to route loans to a web of related parties under the guise of normal business transactions.
Between July 24 and 27, the ED conducted over 72 hours of coordinated search operations across offices and residences linked to the Reliance Group. Investigators seized financial records, digital evidence, and internal communications during the raids. The agency is currently examining the roles of 22 individuals, including key management personnel and close associates of Anil Ambani, along with 60 corporate entities involved in the loan transactions.
Sources familiar with the investigation said the majority of the ₹12,000 crore loaned by RHFL was extended to companies with shared email domains, registered addresses, and directors—indicators of their connection to the Ambani-led group. As of September 30, 2021, nearly ₹6,931 crore of these loans had been classified as non-performing assets (NPAs) or written off entirely.
The SEBI report provided to ED included findings from a forensic audit of RHFL, revealing that multiple companies received large loans without sufficient collateral or clear repayment plans. Among the entities that routed funds to Reliance Infrastructure were Crest Logistics and Engineers Pvt Ltd, RPL Star Power Pvt Ltd, RPL Solar Power Pvt Ltd, Species Trade and Commerce Pvt Ltd, and Worldcom Solutions Ltd—all identified as related or connected to the Ambani group.
Adding to the scrutiny is RHFL’s alleged role in securing ₹2,965 crore in funding from Yes Bank, a portion of which—around ₹1,353 crore—has also turned into NPAs. In that case, the ED suspects bribery involving the bank’s former CEO Rana Kapoor and his wife Bindu Kapoor, with funds routed through her companies. A separate forensic audit commissioned by Yes Bank has also confirmed fund diversion.
In response, Reliance Power and Reliance Infrastructure released statements asserting that all company officials have cooperated fully with the investigating agencies and will continue to do so. A Reliance Group official, speaking on the condition of anonymity, pointed out that the RHFL account was resolved following a Supreme Court judgment in 2023, which led to a change in management. The official also stated that other allegations, including those flagged by SEBI, are sub judice and under challenge at the Securities Appellate Tribunal (SAT) since 2024.
Despite the group’s assertions, SEBI’s August 2024 order had directly held RHFL responsible for structuring a scheme to benefit the group’s own companies, triggering both regulatory and criminal scrutiny.
The outcome of the ongoing probe could have significant implications for financial governance in non-banking financial companies (NBFCs), particularly those connected to large business houses. With several of the implicated group companies already under insolvency resolution, public sector banks may face major losses in terms of recoveries.
As the ED continues examining fund flow patterns and related party transactions, further action is expected, including possible charges under the Prevention of Money Laundering Act (PMLA).
Image source- enforcementdirectorate.gov.in
