ED Makes First Arrest in Rs 3,000-Crore Loan Fraud Case Against Anil Ambani
The Enforcement Directorate (ED) has taken a significant step in its investigation into an alleged Rs 3,000-crore loan fraud case involving companies linked to Reliance Group chairman Anil Ambani. On August 1, 2025, the ED arrested Partha Sarathi Biswal, the Managing Director of Biswal Tradelink Pvt. Ltd. (BTPL), marking the first arrest in this high-profile money laundering probe. This development follows a series of raids and a lookout circular issued against Ambani, signaling escalating scrutiny of financial irregularities tied to his business empire.
The Arrest and Allegations
Partha Sarathi Biswal was taken into custody under the Prevention of Money Laundering Act (PMLA), 2002, for his alleged role in submitting fake bank guarantees worth Rs 68.2 crore to the Solar Energy Corporation of India (SECI). According to the ED, these fraudulent guarantees were arranged on behalf of Reliance Power Ltd., a company within Anil Ambani’s Reliance Group. Investigations revealed that BTPL received Rs 5.4 crore from Reliance Power for facilitating these forged documents, which included fabricated email confirmations using a spoofed domain resembling that of the State Bank of India (SBI). The Delhi Police’s Economic Offences Wing had previously filed a First Information Report (FIR) against BTPL and its directors, highlighting the use of fake guarantees and uncovering seven undisclosed bank accounts operated by the company.
The Broader Investigation
The ED’s probe centers on the alleged diversion of approximately Rs 3,000 crore in loans extended by Yes Bank to Reliance Group companies between 2017 and 2019. The agency suspects a quid pro quo arrangement, noting that Yes Bank promoters received payments shortly before the loans were sanctioned, raising concerns about bribery and loan misuse. The investigation has also uncovered irregularities such as backdated credit approval memorandums, lack of due diligence, and loans disbursed to entities with weak financials or shared directors and addresses. These findings suggest a complex scheme to divert funds to shell companies and related entities within the Reliance Group.
Additionally, the Securities and Exchange Board of India (SEBI) has played a crucial role by sharing findings that pointed to a dramatic increase in corporate loans by Reliance Home Finance Ltd. (RHFL), from Rs 3,742.6 crore in FY 2017–18 to Rs 8,670.8 crore in FY 2018–19. SEBI’s report also alleged that Reliance Infrastructure diverted around Rs 10,000 crore through a company named CLE Pvt Ltd., which was not disclosed as a related party, bypassing shareholder and audit approvals. However, Reliance Infrastructure disputes these figures, claiming the exposure was Rs 6,500 crore and that recovery efforts are underway through legal mediation.
Anil Ambani’s Role and ED’s Actions
The ED has summoned Anil Ambani for questioning on August 5, 2025, at its Delhi headquarters to record his statement under the PMLA. This follows extensive searches conducted from July 24, 2025, across 35 premises linked to 50 companies and 25 individuals associated with the Reliance Group. A lookout circular was issued against Ambani on August 1, 2025, preventing him from leaving India without prior approval from the investigating officer. This measure underscores the agency’s intent to ensure Ambani remains available for the ongoing probe.
The investigation also extends to other financial irregularities, including Reliance Communications Ltd. (RCom), which the State Bank of India (SBI) classified as fraudulent, with an exposure of Rs 2,227.64 crore in loans and Rs 786.52 crore in bank guarantees. Additionally, the ED is probing undisclosed foreign bank accounts, a Rs 1,050-crore fraud involving Canara Bank, and a suspected Rs 2,850-crore investment by Reliance Mutual Fund in Yes Bank’s AT-1 bonds, which were later written off, raising further suspicions of a quid pro quo.
Reliance Group’s Response
Reliance Power and Reliance Infrastructure have issued statements to stock exchanges, distancing themselves from the allegations. They claim the ED’s actions pertain to older transactions involving RCom and RHFL, which have no bearing on their current operations or financial performance. The companies emphasized that Anil Ambani has not been on their boards since March 2022 and that the raids have had “absolutely no impact” on their stakeholders. Reliance Infrastructure also stated that it has settled its Rs 6,500-crore exposure through mediation and is pursuing recovery through the Bombay High Court.
What’s Next?
The arrest of Partha Sarathi Biswal marks a pivotal moment in the ED’s investigation, which is likely to uncover further details as it progresses. With Anil Ambani scheduled for questioning and ongoing probes into multiple financial irregularities, the case could have significant implications for the Reliance Group and India’s corporate governance landscape. The ED’s focus on loan diversions, fake guarantees, and potential bribery highlights the need for stricter oversight in corporate lending practices.
As the investigation unfolds, all eyes will be on the ED’s next moves and Anil Ambani’s response to the allegations. For now, this case serves as a stark reminder of the complexities and risks inherent in high-stakes corporate financing.
Disclaimer: This article is based on publicly available information and does not constitute legal or financial advice. The investigation is ongoing, and all parties are presumed innocent until proven guilty.
