Reliance Power and Reliance Infrastructure Shares Drop 5% Amid ED Raids on Anil Ambani's Properties

Reliance Infrastructure and Reliance Power shares dropped by over 5% each during trading on July 24. This decline followed reports of raids by the Enforcement Directorate (ED) related to an alleged ₹3,000-crore bank loan fraud involving Anil Dhirubhai Ambani Group companies and Yes Bank.

The ED conducted searches at more than 35 locations in Mumbai and Delhi, involving about 50 companies and 25 individuals. These raids are part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA).

The agency is investigating claims of illegal loan diversion between 2017 and 2019. There are suspicions of funds being transferred to Yes Bank promoters' related entities just before loans were given to ADAG companies, suggesting a possible quid pro quo scenario.

The ED is also examining alleged procedural breaches like backdated credit approvals, investments without proper due diligence, and deviations from Yes Bank's internal credit policy.

The money laundering case is based on two CBI FIRs and information from various agencies including SEBI, the National Housing Bank, NFRA, and Bank of Baroda.

Reliance Communications, along with promoter director Anil D. Ambani, has been classified as 'fraud' by State Bank of India. The bank is set to file a complaint with CBI, as disclosed in Parliament on Monday.

The entities were flagged as fraud on June 13, 2025, in line with RBI guidelines on Fraud Risk Management. The bank reported this classification to RBI on June 24, 2025, and is proceeding with a complaint to CBI.