‘8 yr old loans, fully repaid’: Anil Ambani’s Reliance Group issues detailed rebuttal after ED raids

Anil Ambani’s Reliance Group on Thursday issued a detailed clarification rejecting the basis of recent Enforcement Directorate (ED) actions, stating that the allegations under investigation “pertain to transactions involving Yes Bank and Reliance Home Finance, which are more than 8 years old.”

In its statement, Reliance Group said the loans under scrutiny were legitimate, fully secured, and have been fully repaid. “Loans extended by Reliance Home Finance Limited (RHFL) to certain private companies of the promoter of Yes Bank were sanctioned on merit, after following the due process, and were duly approved by a credit committee comprising more than 30 individuals. These loans were fully secured and have been fully repaid, including interest and the outstanding is zero.”

Addressing claims that ED was probing a possible bribe-for-loan nexus between Yes Bank and Reliance Group firms, the company said: “Yes Bank had granted loans to Reliance entities after following the due process. The entire exposure of Reliance Group companies is fully secured and was undertaken strictly in the ordinary course of business. All transactions between Reliance Group companies and Yes Bank have been carried out in complete compliance with applicable laws, regulations, and financial norms.”

On the reported involvement of SEBI, which is said to have shared findings with ED regarding a dramatic jump in RHFL’s corporate loan book from ₹3,742.60 crore in FY18 to ₹8,670.80 crore in FY19, Reliance clarified: “Allegations similar to those referred to in the media reports were addressed in an order passed by SEBI in August 2024. This order has been challenged and is currently pending adjudication before the Hon’ble Securities Appellate Tribunal (SAT). The matter is thus sub-judice.”

The company also referred to the Supreme Court’s March 2023 judgment that resolved the RHFL debt restructuring process led by Bank of Baroda.

Responding to the classification of Reliance Communications Limited (RCOM) as a “fraud” account by SBI, the statement said: “RCOM has been under the Corporate Insolvency Resolution Process (CIRP) pursuant to the Insolvency and Bankruptcy Code, 2016, for over six years. The matters pertaining to the resolution of RCOM are sub-judice in the NCLT and Hon’ble Supreme Court of India.”

It added: “State Bank of India (SBI) did not grant Anil Ambani an opportunity for a personal hearing before its committee made its decision in the matter. Furthermore, SBI had dropped similar allegations against other noticees on identical grounds; however, Mr. Ambani was not afforded the same treatment. This failure on the part of SBI amounts to a serious breach of the principles of natural justice and runs contrary to established judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court.”

The group also highlighted that Ambani had no operational involvement in RCOM: “It is important to note that Mr. Anil D. Ambani served as a non-executive director on the board of Reliance Communications Limited (RCOM) and was not involved in its day-to-day operations, which were managed by the company’s key managerial personnel.”

Moreover, Reliance stated that SBI failed to share the underlying documents behind its decision: “SBI did not provide Mr. Ambani with the underlying documents forming the basis of the Forensic Audit Report (FAR), thereby depriving him of a fair opportunity to assess and respond to the allegations.”

The group pointed out that Canara Bank, a key member of the lending consortium alongside SBI, has withdrawn its fraud classification of RCOM accounts. “Canara Bank…has unconditionally withdrawn the fraud classification of RCOM accounts on 10 July 2025 in the Bombay High Court.”

To clarify the current structure, the company said, “Anil Ambani resigned from the board of RCOM in 2019. Presently, Anil Ambani is not on the board of any Reliance Group companies. RCOM and RHFL are not part of the Reliance Group.”

Currently, only two companies remain listed in the Reliance Group – Reliance Infrastructure Ltd. and Reliance Power Ltd. – and the group stated firmly that the ongoing enforcement actions have no bearing on them. “The said actions have absolutely no impact on the business operations, financial performance, employees, shareholders, or any other stakeholders of Reliance Infrastructure Limited and Reliance Power Limited or any other continuing Reliance Group entity.”