Reliance Mutual Funds' Rs 2,850-Crore Investment In Yes Bank's AT-1 Bonds Under ED Scanner

The Enforcement Directorate is probing the alleged financial irregularities linked to the investment of Rs 2,850 crore by Reliance Mutual Fund in Yes Bank’s Additional Tier-1 or AT-1 bonds, the agency sources told NDTV Profit.

These bonds, which were later written off during Yes Bank’s bailout, resulted in heavy losses for public investors. Investigators suspect a potential quid pro quo arrangement, prompting closer scrutiny by both the ED and the CBI.

In a broader sweep of the case, the ED has reportedly uncovered fund diversions totalling over Rs 10,000 crore by Reliance Infrastructure through a previously undisclosed entity referred to as ‘C Company’.

Officials have also flagged a Rs 5,480 crore loan restructuring deal by Reliance Infra, from which only Rs 4 crore was recovered in cash. The remaining settlement was reportedly routed through defunct distribution companies (discoms), raising doubts over the possibility of any meaningful recovery.

Further, Reliance Infra is accused of bypassing mandatory audit checks and channelling funds into entities under the RAAGA corporate group.

According to ED sources, the discoms involved in the Rs 6,499 crore settlement are now non-operational, reinforcing suspicions of deliberate financial mismanagement. The ED continues to investigate the scale and structure of these transactions, with more revelations likely in the coming weeks.

This comes after the ED searched properties linked to Anil Ambani in Mumbai and Delhi over alleged money laundering.

The agency carried out operations at more than 35 premises connected to Reliance Home Finance Ltd., covering around 50 companies and 25 individuals, sources said, adding that the searches were conducted under Section 17 of the Prevention of Money Laundering Act.