Reliance Group Stocks Tumble Amid ED Raids, Allegations of Loan Fraud and Bribery

Reliance Group stocks, including Reliance Power and Infrastructure, have been stuck in the lower circuit following Enforcement Directorate (ED) raids on 35 locations linked to Anil Ambani and 50 entities associated with the Reliance Anil Dhirubhai Ambani Group (ADAG). The ED is investigating allegations of a Rs 3,000 crore loan fraud and diversion, as well as bribery and loan nexus with Yes Bank promoters. The company has denied any wrongdoing, stating that loans were sanctioned on merit and fully repaid.

Stocks of Reliance Infrastructure and Reliance Power have been trading at their lower circuits following extensive Enforcement Directorate (ED) raids on 35 locations linked to Anil Ambani and 50 entities associated with the Reliance Anil Dhirubhai Ambani Group (ADAG). The raids, carried out on July 24, 2025, are part of an investigation into allegations of a Rs 3,000 crore loan fraud and diversion, as well as bribery and loan nexus with Yes Bank promoters.

The ED's probe, initiated under the Prevention of Money Laundering Act (PMLA), follows two FIRs registered by the Central Bureau of Investigation (CBI). The raids targeted premises linked to over 50 companies and 25 individuals, including Anil Ambani, chairman of ADAG. Preliminary investigations have revealed significant irregularities in loan approvals and potential bribery involving Yes Bank officials, including the bank’s former chairman, Rana Kapoor [1].

The ED suspects illegal diversion of around Rs 3,000 crore in loans issued by Yes Bank between 2017 and 2019. The investigation has uncovered evidence of loan diversions to multiple group companies and shell firms, flouting the terms of lending. The agency has identified several red flags, including loans to financially weak entities, absence of proper documentation, and borrowers with common addresses and directors [2].

Both Reliance Infrastructure and Reliance Power have denied any involvement in the transactions under investigation. The companies stated that the enforcement action has no operational or financial impact on their businesses. They noted that the reports pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old. RCOM has been undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, for over six years, while RHFL has been fully resolved pursuant to a judgment by the Hon’ble Supreme Court of India [3].

The raids have weighed on investor sentiment, sparking a sell-off in both Reliance Infra and Reliance Power shares. Shares of Reliance Infrastructure and Reliance Power have dropped 10% over two sessions, hitting their lower circuits of 5% on Friday after the ED probe [2].

References:
[1] https://www.hindustantimes.com/india-news/why-ed-raided-anil-ambanis-reliance-group-linked-50-companies-101753347704896.html
[2] https://economictimes.indiatimes.com/markets/stocks/news/reliance-infra-reliance-power-shares-slide-10-in-2-days-after-ed-raids-sites-linked-to-anil-ambani/articleshow/122895407.cms
[3] https://www.livemint.com/market/stock-market-news/anil-ambani-owned-reliance-power-reliance-infra-deny-financial-impact-of-ed-action-heres-what-the-companies-said-11753355829096.html