ED Attaches Anil Ambani’s Mumbai Bungalow, 3$\text{₹}3,000$ Crore Assets4

In a significant escalation of its probe into alleged financial irregularities within the Reliance Anil Ambani Group (R-ADAG), the Enforcement Directorate (ED) has provisionally attached assets valued at over $\text{₹}3,000$ crore. The seized properties, which are spread across multiple cities, notably include the Ambani family’s high-profile residence in Mumbai’s upscale Pali Hill.

The crackdown, executed under the Prevention of Money Laundering Act (PMLA), targets assets with an aggregate value of approximately $\text{₹}3,084$ crore. The attachment orders, issued on October 31, cover a wide spectrum of assets, including residential units, office premises, and land parcels in at least eight locations: Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, Chennai, and East Godavari in Andhra Pradesh. Among the most prominent properties attached is the Reliance Centre in New Delhi and the famous Pali Hill residence in Bandra (West), Mumbai.

The Core Allegations: Funds Diversion and Money Laundering

The ED’s investigation stems from a detailed probe into the alleged diversion and laundering of public funds that were primarily raised by two group companies: Reliance Home Finance Ltd. (RHFL) and Reliance Commercial Finance Ltd. (RCFL).

• Yes Bank Link: The case spotlights the relationship between R-ADAG firms and Yes Bank. Between 2017 and 2019, Yes Bank is reported to have invested a cumulative total of approximately $\text{₹}5,010$ crore in instruments of RHFL ($\text{₹}2,965$ crore) and RCFL ($\text{₹}2,045$ crore). By December 2019, these investments had devolved into Non-Performing Assets (NPAs), leaving a substantial outstanding amount.
• The Routing of Funds: According to the ED, the probe revealed a mechanism used to circumvent regulatory hurdles. Public money invested in the erstwhile Reliance Nippon Mutual Fund, which could not be directly invested in group companies due to SEBI’s conflict-of-interest norms, was allegedly routed indirectly through Yes Bank’s exposure to RHFL and RCFL. These finance companies then extended loans to other entities linked to the Reliance Anil Ambani Group.
• Control Failures and Siphoning: Fund tracing conducted by the central agency indicated “intentional and consistent control failures” in the lending process. It is alleged that large portions of the corporate loans were diverted, on-lent to group-linked entities, and ultimately siphoned off. Disturbing findings included loans being “speed-processed”—in some cases, sanctioned, documented, and even disbursed on the same day—with field inspections allegedly waived and security documents often found to be blank or undated.

Wider Financial Irregularities Under Scrutiny

This attachment action is part of a larger investigation into alleged financial irregularities and collective loan “diversion” estimated to be over $\text{₹}17,000$ crore involving multiple group entities, including Reliance Infrastructure. The ED’s money laundering case is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI).

The agency has stated that its crackdown is intended to trace the proceeds of the alleged crime and secure attachments, emphasizing that any recoveries made will ultimately safeguard public interest and benefit the general public.

Ongoing Investigation: Reliance Group Chairman Anil Ambani was previously questioned by the ED in August as part of the ongoing probe, which has also involved searches at the premises of multiple executives and companies linked to the group. The Group has not issued an official statement regarding the latest attachment of assets.

The provisional attachment marks a major turn in the long-running investigation, signalling the central agency’s resolve to recover funds allegedly laundered and diverted.