The ED conducted raids at 35 locations, 50 companies, and more than 25 individuals related to the Anil Ambani Group in a money laundering investigation.
Investigations are underway into the misappropriation, bribery, and fraud in the Rs 3,000 crore loan given by Yes Bank to RAAGA companies between 2017 and 2019.
Shares of Reliance Power and Reliance Infrastructure fell by 5%.
Reliance Shares Hit Lower Circuit: The Enforcement Directorate (ED) conducted raids at more than 35 locations in Mumbai and New Delhi. This action was taken against companies related to Reliance Group Chairman Anil Ambani in a money laundering case.
According to the ED, institutions like the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda have provided crucial information in the investigation. Today's raid included more than 35 locations, 50 companies, and over 25 individuals. This action was taken under Section 17 of the Prevention of Money Laundering Act.
In the preliminary investigation, the ED found that a conspiracy was hatched to divert thousands of crores of funds by defrauding banks, investors, shareholders, and other public institutions. The aspect of bribery has also come to light in this matter. There is suspicion of involvement by the promoters of Yes Bank.
Investigations are underway into the misuse of loans amounting to nearly 3,000 crore rupees given by Yes Bank to companies of the Reliance Anil Ambani Group (RAAGA) between 2017 and 2019. It has been observed that suspicious funds were received by entities related to the bank's promoters prior to the approval of these loans.
Serious irregularities have been found in the loan approval process of Yes Bank. These developments have had a direct impact on the stock market. The share of Reliance Power Limited fell by 5% on the BSE, and the share of Reliance Infrastructure Limited also declined.
According to the report, between 2017 and 2019, Yes Bank had given loans of approximately 3,000 crores to companies of the Reliance Anil Ambani Group (RAAGA). The ED claims that before the approval of these loans, suspicious payments were received by private entities related to the promoters of Yes Bank.
Q1: Why did the ED conduct raids on the Anil Ambani Group?
- Suspected irregularities, fraud, and money laundering involving Rs 3,000 crore loans from Yes Bank.
English: The ED conducted raids over suspected money laundering and fraud involving Rs 3,000 crore loans from Yes Bank to RAAGA companies.
Q2: How many locations and companies were raided?
- Raids covered 35 locations, 50 companies, and over 25 individuals.
English: Raids covered 35 locations, 50 companies, and over 25 individuals.
Q3: What impact did this have on the stock market?
- Shares of Reliance Power and Reliance Infrastructure fell by 5%.
English: Shares of Reliance Power and Reliance Infrastructure hit 5% lower circuit limits.
Q4: What specific irregularities were found in Yes Bank's loans?
- Back-dated credit approvals, lack of due diligence, and violations of the bank’s credit policy.
English: Back-dated credit approvals, lack of due diligence, and violations of the bank’s credit policy were found.
Q5: What could happen next?
- The ED investigation may expand, with possible penalties, asset seizures, and legal action if charges are proven.
English: ED probe may expand; penalties, asset seizures, and legal action possible if charges are proven.
