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Source: India's Financial Crime Agency is investigating Anil Ambani Reliance Group.

A government source confirmed that the agency responsible for fighting financial crime in India searched 35 locations connected to Reliance Anil Ambani Group, as part of a probe into allegations of money laundering and siphoning public funds.

Sources from the Enforcement Directorate said that the group orchestrated a well-planned scheme to divert bank loans worth 30 billion rupees (350 million dollars) from YES Bank between 2017 and 2019. The source spoke on condition of anonymity as he was not authorised by the media to speak.

Source: Anil Ambani and his Reliance Group entities were accused of paying bribes before loans were approved to YES Bank officials, according to the source. The source also said that the loan approvals did not follow the bank's procedures.

Reliance Bank and YES Bank didn't immediately respond to comments.

Since 2017, several group companies of Anil ambani (the younger brother of Mukesh Ambani), the billionaire Mukesh's brother, have filed for bankruptcy.

YES Bank - from which Anil Ambani Group firms had borrowed heavily - was declared insolvent by 2020. A group of Indian lenders rescued it in a plan that the central bank approved. Sumitomo Banking Corp. of Japan is looking to acquire a 20% stake. The deal has not yet been approved by regulators.

The investigation also revealed gross violations of YES Bank’s loan approval processes, including lending to companies that had weak financials and backdating credit notes. It also discovered "evergreening", or issuing new loans, to avoid labelling assets non-performing, as well as misrepresenting financials.

Rana Kapoor was arrested in 2021 after being charged by the Financial Crime Agency with bank fraud. According to local media, he pleaded not guilt and was granted bail by a Mumbai special court in 2024.

In recent years, Anil Ambani and his group companies have faced several regulatory actions. The markets regulator SEBI banned Anil Ambani, 24 other individuals, and Reliance Home Finance from the securities market for five years in August 2024.

Reliance Infrastructure shares and Reliance Power shares fell up to 5% after news of the latest investigation spread. $1 = 86.3300 Indian Rupees (Reporting and writing by Nikunj Ahri, in New Delhi; Editing by William Mallard).

(source: Reuters)