Thu Jul 24 16:20:00 UTC 2025: **Summary:**

The Enforcement Directorate (ED) is investigating Reliance Mutual Fund’s Rs 2,850 crore investment in YES Bank’s AT-1 bonds, suspecting a quid pro quo arrangement. These bonds were later written off, leading to losses for mutual fund investors. The ED, along with the CBI, is also scrutinizing Reliance Infrastructure for allegedly diverting over Rs 10,000 crore through undisclosed inter-corporate deposits (ICDs) to related parties. Investigations revealed that Reliance Infrastructure took a haircut of Rs 5,480 crore and only Rs 4 crore has been received in cash. The rest (At least Rs 6,499 crore) has been settled in the form of assignment or transfer of assets and economic rights, mainly in certain discoms. In connection with the investigation, over 35 premises in Mumbai were searched under the Prevention of Money Laundering Act (PMLA). Reliance Power and Reliance Infrastructure claim the ED action has no impact on their business, attributing the allegations to old transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL). Shares of both companies plummeted following the raids.

**News Article:**

**ED Raids Anil Ambani Group Over Suspected Fund Diversion, YES Bank AT-1 Bond Investment**

**Mumbai, India** – The Enforcement Directorate (ED) conducted searches across 35 premises in Mumbai on Thursday, targeting the Anil Ambani-led Reliance Group in connection with a probe into suspected money laundering and fund diversion. The investigation centers around a Rs 2,850 crore investment by Reliance Mutual Fund in Additional Tier-1 (AT-1) bonds of YES Bank, which are now written off, raising suspicions of a quid pro quo arrangement.

Sources within the ED allege that the investment, which resulted in losses for mutual fund investors, is being scrutinized for potential irregularities. The Central Bureau of Investigation (CBI) is also reportedly involved in the investigation.

The ED’s investigation, based on information from SEBI, revealed that Reliance Infrastructure allegedly diverted over Rs 10,000 crore through undisclosed inter-corporate deposits to related parties, disguised as loans, including a ‘C’ company. Investigations revealed that Reliance Infrastructure took a haircut of Rs 5,480 crore and only Rs 4 crore has been received in cash. The rest (At least Rs 6,499 crore) has been settled in the form of assignment or transfer of assets and economic rights, mainly in certain discoms. The agency suspects that Reliance Infrastructure avoided disclosing these related party transactions to evade shareholder and audit committee scrutiny.

Following the raids, Reliance Power and Reliance Infrastructure issued identical statements claiming the ED action had “absolutely no impact” on their operations, financial performance, or stakeholders. The companies attributed the media reports to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) from over a decade ago.

Despite these claims, investors reacted negatively, with shares of both Reliance Power and Reliance Infrastructure plummeting 5% and hitting their lower circuit limits on Thursday. The investigation is ongoing, and the ED is expected to release further details as the probe progresses.

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