ED Issues Look Out Circular Against Anil Ambani In Loan Fraud Case

The Enforcement Directorate has issued a look out circular against Reliance Group Chairman Anil Ambani, in connection with the alleged Rs 3,000-crore loan fraud case, as per NDTV sources. Ambani has been summoned to appear before the ED on Tuesday.

A look out circular prevents individuals from leaving the country in an attempt to evade prosecution. The move follows raids launched by the agency on July 24 across multiple premises associated with Ambani’s companies.

The loan fraud investigation centres on loans disbursed by Yes Bank Ltd. to Ambani’s group firms between 2017 and 2019. The ED suspects that a portion of these funds may have been illegally diverted.

Investigators are also probing a possible quid pro quo, alleging that Yes Bank promoters received financial benefits shortly before the loans were sanctioned.

In response to the developments, Reliance Power and Reliance Infrastructure had already issued statements to the stock exchanges on July 26, asserting that the ED’s actions had “absolutely no impact” on their business operations, financial performance, or stakeholder interests.

In June this year, the State Bank of India declared Reliance Communications and its promoter Anil Ambani’s account as 'fraud', notifying the Reserve Bank of India and filing a complaint with the CBI. Investigators have since seized documents and digital records from group offices in Mumbai and Delhi as part of a wider probe into suspected misuse of public funds through a network of shell companies.

Earlier, the Securities and Exchange Board of India had barred Anil Ambani and several senior group executives from the securities markets for five years and imposed a monetary penalty for alleged diversion of funds from Reliance Home Finance.