Shares of Reliance Power and Reliance Infrastructure saw a sharp decline on Thursday, July 24, following news that the Enforcement Directorate (ED) had launched multiple raids linked to a ₹3,000 crore loan fraud involving companies associated with the Anil Dhirubhai Ambani Group (ADAG) and Yes Bank. Both stocks fell over 5% during intraday trading, reacting to the developments.
Reliance Infrastructure has dropped by 9.37% over the past five trading days, while Reliance Power has declined by 7.41% in the same period. The trigger for this sudden sell-off was the ED’s wide-ranging search operation, which targeted more than 35 locations in Mumbai and Delhi. The raids covered approximately 50 companies and over 25 individuals, all being investigated under the Prevention of Money Laundering Act (PMLA). The ED's probe stems from two FIRs previously registered by the Central Bureau of Investigation (CBI).
Sources familiar with the investigation said that the ED is examining whether loans totaling nearly ₹3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were improperly diverted. The agency suspects that some of these loans were part of a possible bribe-for-loan scheme. It is alleged that funds were routed to entities linked to Yes Bank’s promoters shortly before being disbursed to ADAG companies.
The ED’s findings so far suggest serious lapses in the loan approval process at Yes Bank. Some loans appear to have been cleared without due diligence, using backdated memos, or were issued on the same day of application—or even before formal approval. There are also allegations that funds were funneled through shell companies that had overlapping addresses and directors, raising questions about the legitimacy of the entire process.
The investigation has also been supported by information from several institutions, including SEBI, the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda. SEBI had previously flagged unusual growth in corporate lending at Reliance Home Finance Ltd (RHFL), another ADAG company. RHFL’s loan book grew rapidly from ₹3,742 crore in FY18 to ₹8,670 crore in FY19, raising red flags over the nature and oversight of those loans.
These raids come shortly after another significant development involving Anil Ambani. On June 13, 2025, the State Bank of India (SBI) classified Reliance Communications (RCom) and its promoter Anil Ambani as “fraud,” in accordance with the RBI’s fraud reporting framework. SBI informed the RBI on June 24 and is now preparing to file a complaint with the CBI. RCom’s Resolution Professional officially notified the Bombay Stock Exchange on July 1, fulfilling regulatory disclosure requirements.
SBI’s exposure to RCom includes ₹2,227.64 crore in fund-based loans, along with interest and charges, and ₹786.52 crore in non-fund-based guarantees. RCom has been undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code since 2019, with a final decision still pending from the National Company Law Tribunal (NCLT) in Mumbai. Meanwhile, SBI has also initiated personal insolvency proceedings against Anil Ambani under the same law.
In response to the negative media coverage, Reliance Power and Reliance Infrastructure issued a joint statement distancing themselves from RCom and RHFL. The companies clarified that they are separate and independently listed entities, with no financial or business links to either RCom or RHFL. They also noted that Anil Ambani does not hold any position on the boards of either firm, and therefore any action involving RCom or RHFL should not affect Reliance Power or Reliance Infrastructure.
The statement further pointed out that RHFL has already been resolved through a Supreme Court judgment and that similar allegations are currently under consideration by the Securities Appellate Tribunal. The companies emphasized that ongoing legal proceedings involving other ADAG-linked entities have no bearing on their operations, governance, or management.
