ED Attaches ₹1,885 Crore Assets in Anil Ambani Group Case

Introduction to the ED's Action

The Directorate of Enforcement (ED) has intensified its investigation into the Anil Ambani Group, provisionally attaching assets valued at ₹1,885 crore on January 28, 2026. This action is part of a larger probe into alleged bank fraud and money laundering involving several group companies. The move was followed by the arrest of a former director of Reliance Communications (RCom), signaling a significant development in the long-running case.

Details of the Asset Attachment

The attachment was executed under the Prevention of Money Laundering Act (PMLA) through four separate provisional orders. The investigation covers financial irregularities at Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), Reliance Communications Limited (RCom), and their exposures to Yes Bank. The attached assets are diverse, including bank balances, receivables, and significant shareholdings in unquoted investments. Specifically, the ED has attached Reliance Infrastructure Limited's stakes in BSES Yamuna Power Limited, BSES Rajdhani Power Limited, and Mumbai Metro One Private Limited. Additionally, the agency attached ₹148 crore in bank balances and receivables worth ₹143 crore held by Value Corp Finance and Securities Limited. A residential property in the name of a senior Reliance Group employee and movable assets linked to the arrested former director, Punit Garg, were also included in the seizure.

The Scale of the Investigation

This latest action brings the total value of assets attached by the ED in related bank fraud probes to approximately ₹12,000 crore. The agency had previously attached properties worth over ₹10,117 crore connected to RCom, RCFL, and RHFL. The investigation is rooted in a CBI FIR that alleges a bank fraud of over ₹40,000 crore. The ED's probe focuses on the alleged fraudulent diversion of public funds by multiple group companies, including Reliance Infrastructure and Reliance Power. The agency claims that these funds were routed through complex financial structures to conceal their origin and end-use.

Allegations of Fund Diversion via Yes Bank

The ED's investigation highlights a specific period between 2017 and 2019 when Yes Bank made substantial investments in the group's finance companies. Yes Bank invested ₹2,965 crore in RHFL instruments and ₹2,045 crore in RCFL instruments. By December 2019, these investments had turned into non-performing assets, with outstanding dues of ₹1,353.50 crore from RHFL and ₹1,984 crore from RCFL. The agency alleges that RHFL and RCFL collectively received public funds exceeding ₹11,000 crore. According to the ED, these investments were part of a 'circuitous' route. Before Yes Bank's exposure, it had received significant funds from the erstwhile Reliance Nippon Mutual Fund. SEBI regulations prevented the mutual fund from directly investing in Anil Ambani group finance companies due to conflict-of-interest rules. The ED alleges that these funds were indirectly channeled through Yes Bank to bypass the regulations.

Arrest of Former RCom Director

A day after the asset attachment, on January 29, 2026, the ED arrested Punit Garg, a former director at Reliance Communications. The arrest is directly linked to the bank fraud case and underscores the agency's focus on holding key individuals accountable for the alleged financial misconduct.

Key Financials at a Glance

Reliance Group's Position

In response to the ongoing investigations, the Reliance Group has previously clarified its stance. A spokesperson stated that the attached assets primarily belong to Reliance Communications (RCom), which has not been part of the Reliance Group since 2019. The group emphasized that RCom has been undergoing a Corporate Insolvency Resolution Process (CIRP) for several years under the supervision of the National Company Law Tribunal (NCLT) and a Resolution Professional appointed by lenders led by the State Bank of India. The statement also highlighted that Anil Ambani resigned from the RCom board in 2019 and has no involvement with the company's affairs.

No Impact on Operating Companies

The group has sought to reassure stakeholders that the ED's actions against RCom do not affect its other operating entities. The spokesperson clarified that the attachment order has no material impact on the operations, performance, or future prospects of Reliance Infrastructure and Reliance Power. Both companies continue to function normally, focusing on their growth and operational commitments. It was also noted that Anil Ambani has not served on the boards of either of these two companies for over three years.

Market and Industry Implications

The ED's consistent actions against the Anil Ambani Group companies highlight the increasing scrutiny on corporate governance and financial dealings in India. The case serves as a significant example of regulatory bodies pursuing complex money laundering and bank fraud allegations. For the financial sector, it underscores the risks associated with large corporate exposures and the importance of due diligence. The outcome of the legal proceedings will be closely watched by investors and the broader market to understand its implications for corporate accountability.

Conclusion

The ED's attachment of ₹1,885 crore in assets and the arrest of a former RCom director mark a critical phase in the investigation into the Anil Ambani Group. While the agency continues to build its case on alleged fund diversion and bank fraud, the Reliance Group maintains that the issue is confined to RCom, a legacy entity now under insolvency. The legal battle is expected to continue, with future developments depending on the proceedings at the NCLT and the findings of the ongoing PMLA investigation.