ED Issues Lookout Notice Against Anil Ambani in ₹3,000 Crore Loan Fraud and Fake Bank Guarantee Case
In a major development that has intensified scrutiny of high-profile financial irregularities, the Enforcement Directorate (ED) has issued a lookout circular (LOC) against Reliance Group Chairman Anil Ambani. The notice is part of an ongoing investigation into an alleged ₹3,000 crore loan fraud involving YES Bank and multiple Reliance Group companies.
The LOC has been issued to ensure that Anil Ambani does not leave the country while under investigation. It has been circulated to all immigration checkpoints at airports and seaports across India. This step allows authorities to detain him if he attempts to exit the country without clearance. The ED has also summoned him for questioning on Tuesday.
Key Developments:
- The ED has issued a lookout circular against industrialist Anil Ambani in a ₹3,000 crore loan fraud case.
- He has been summoned for questioning by the ED on Tuesday.
- The probe relates to loans issued by YES Bank between 2017 and 2019 to Reliance Group companies.
- The ED suspects that a significant part of the loans were illegally diverted.
- Investigators have found possible quid pro quo arrangements involving YES Bank promoters.
- A parallel investigation into a ₹68.2 crore fake bank guarantee has led to the arrest of Partha Sarathi Biswal, MD of Biswal Tradelink.
- Over 50 raids have been conducted at premises linked to the Reliance Group since July 24.
- Reliance Group companies claim the investigation is based on old transactions and does not impact current operations.
Background of the Loan Fraud Case
The ED is probing the alleged diversion of funds worth ₹3,000 crore that were extended as loans by YES Bank to various Reliance Group companies. The transactions in question occurred between 2017 and 2019. According to ED officials, there is evidence that YES Bank promoters received payments shortly before these loans were sanctioned, suggesting possible quid pro quo arrangements.
The ED initiated its investigation under the Prevention of Money Laundering Act (PMLA) and launched a series of raids beginning July 24. These searches targeted over 50 entities and individuals associated with the case and continued for several days. The agency is examining money trails, suspicious transactions, and links between YES Bank officials and Reliance Group executives.
Response from Reliance Group
In the wake of the ED’s actions, Reliance Power and Reliance Infrastructure released public statements through the stock exchanges. The companies confirmed the ED’s activities but emphasized that the raids had “absolutely no impact” on their business operations, financial health, employees, shareholders, or stakeholders.
The group also clarified that the media reports appear to pertain to transactions involving Reliance Communications (RCOM) and Reliance Home Finance Limited (RHFL), both of which are no longer active. According to the statement, these transactions date back over a decade and are unrelated to the current functioning of Reliance Power and Reliance Infrastructure.
The Fake Bank Guarantee Case
The ongoing investigation has also uncovered a separate scam involving fake bank guarantees. In this parallel case, the ED has arrested Partha Sarathi Biswal, the Managing Director of Biswal Tradelink Pvt Ltd (BTPL). According to the ED, BTPL received ₹5.4 crore from Reliance Power for arranging fake bank guarantees worth ₹68.2 crore.
These guarantees were allegedly linked to a tender floated by the Solar Energy Corporation of India (SECI). What raised serious concerns was the method used to deceive SECI. Investigators found that BTPL used a spoofed domain name, “s-bi.co.in,” which closely resembled the official domain of the State Bank of India (sbi.co.in). Through this fake domain, BTPL sent forged emails and fake SBI endorsements, misleading SECI officials and other stakeholders into believing the bank guarantees were authentic.
The ED believes this was a calculated attempt to manipulate the bidding process and obtain favorable outcomes using fraudulent documents. The case has now expanded to include charges of forgery, cheating, criminal conspiracy, and money laundering.
What the Lookout Circular Means
A lookout circular is a preventive tool used by law enforcement agencies to stop individuals under investigation from fleeing the country. It is typically issued in cases where the accused has significant financial or political influence and is considered a flight risk. In Anil Ambani’s case, the ED believes that such a step is necessary to ensure his availability for questioning and further investigation.
What’s Next
With both the loan fraud and fake guarantee cases being actively pursued, legal trouble is mounting for Anil Ambani and his business empire. His upcoming appearance before the ED will be closely watched and could determine the next steps in the investigation. More arrests or revelations could follow as authorities continue examining documents, email trails, financial statements, and cross-company transactions.
The ED’s investigation into both cases is ongoing, and more details are likely to emerge in the coming weeks.
