ED's Biggest Corporate Loan Fraud Probe Now Linked To Anil Ambani Group

The Enforcement Directorate has termed the illegal loan fraud linked to Anil Ambani Group companies as one of the biggest corporate loan frauds currently under investigation. This massive Rs 17,000-crore default has thrust the spotlight once again on some of the largest corporate loan frauds in India's recent history, highlighting persistent challenges in bank loan recoveries and corporate governance.

The Anil Ambani case involves complex financial dealings, including alleged quid pro quo arrangements with bankers, suspicious investments routed through shell companies, and forged bank guarantees.

As the ED expands its probe, summoning key executives and seeking details from multiple banks, attention turns to other high-profile fraud cases that have rocked the Indian banking system over the past decade.

Top Corporate Loan Fraud Cases in India

Vijay Mallya – Kingfisher Airlines: The former liquor baron defaulted on loans amounting to Rs 9,000 crore taken by Kingfisher Airlines. Mounting losses and mismanagement eventually led to the collapse of the airline. Mallya fled the country amid legal proceedings, making the case one of India's most infamous financial scandals.

Nirav Modi – Punjab National Bank Scam: Nirav Modi's Rs 14,000-crore scam exposed a massive fraud involving fake Letters of Undertaking (LoUs) issued by PNB officials, which enabled unauthorised credit from overseas branches. The scam shook the entire banking sector and led to sweeping regulatory reforms.

ICICI Bank – Videocon Loan Case: Involving Rs 3,250 crore, this case raised serious questions about governance and conflict of interest within one of India's leading private sector banks. Allegations surfaced over irregularities in sanctioning loans to the Videocon Group, prompting investigations into banking ethics.

Winsome Diamonds: This case involved loan defaults of approximately Rs 7,000 crore, with suspicions of fund misappropriation and export-related scams. It underscored the vulnerabilities in lending to the gems and jewelry sector.

In case of Vijay Mallya and Nirav Modi, the ED has made significant strides in recovering dues from economic offenders involved in such scams. To date, properties worth Rs 22,280 crore have been restored, helping banks recoup losses from individuals like Vijay Mallya, Nirav Modi, and Mehul Choksi.

While extradition proceedings for Mallya and Modi are still underway.

The Anil Ambani loan default case not only highlights the scale of corporate loan frauds but also signals a renewed focus by law enforcement agencies on corporate accountability. With the ED intensifying its probe and issuing lookout circulars, the coming weeks will be critical in determining the next course of action—whether it leads to detention or further legal ramifications for the accused.

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