The Enforcement Directorate (ED) on Thursday launched an extensive raid across multiple locations in Mumbai tied to industrialist Anil Ambani, just days after the State Bank of India (SBI) officially classified him and his firm Reliance Communications (RCom) as “fraudulent” account holders.

The searches, conducted under the Prevention of Money Laundering Act (PMLA), span over 35 premises, involving around 50 companies and more than 25 individuals associated with the Reliance Anil Dhirubhai Ambani Group (RAAGA), according to sources quoted by ANI.

The ED initiated its probe following FIRs filed by the Central Bureau of Investigation (CBI). Additionally, institutions such as the National Housing Bank, Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda provided relevant inputs to the investigation.

Preliminary findings by the ED have exposed what officials describe as a “systematic scheme” to siphon off public funds through fraudulent practices. The agency suspects the diversion of loans, manipulation of bank records, and bribery of financial institution officials, particularly involving the promoters of Yes Bank.

Between 2017 and 2019, RAAGA companies reportedly received nearly ₹3,000 crore in loans from Yes Bank. The ED claims that around the same time, Yes Bank’s promoters allegedly received substantial sums in their personal accounts—suggesting a possible quid pro quo arrangement. Investigators also point to serious procedural violations in loan disbursal processes, including back-dated credit approval documents and a lack of due diligence in investment proposals, all in breach of the bank’s credit policy.

This sweeping investigation comes on the heels of SBI’s official declaration of Reliance Communications and Anil Ambani as “fraud” entities. On 13 June 2025, SBI classified the accounts as fraudulent in accordance with the Reserve Bank of India’s Master Directions on Fraud Risk Management and the bank’s internal policies. The classification was reported to the RBI on 24 June, with SBI also in the process of filing a complaint with the CBI.

Minister of State for Finance Pankaj Chaudhary informed Parliament of the developments earlier this week. He disclosed that RCom’s total exposure to SBI includes a fund-based loan of ₹2,227.64 crore, plus accrued interest and expenses from August 2016, as well as ₹786.52 crore in non-fund-based bank guarantees.

In a regulatory filing dated 1 July 2025, the Resolution Professional for RCom confirmed to the Bombay Stock Exchange that the company had been officially designated as a fraud account by SBI.

As the investigation unfolds, the ED is expected to expand the scope of its inquiry into broader corporate governance failures and banking irregularities involving several institutions.

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