Winning Bizness Desk
Mumbai. Anil Ambani on February 19 filed an affidavit in the Supreme Court, undertaking that he will not leave India without prior permission of the court. The assurance comes amid an ongoing probe into an alleged Rs 40,000 crore bank fraud linked to companies of the Reliance Anil Dhirubhai Ambani Group (ADAG). Ambani also assured the court that he would fully cooperate with investigations being carried out by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI).
Written undertaking confirms earlier oral assurance
According to reports, Ambani’s affidavit formally confirms an undertaking earlier given on his behalf by senior advocate Mukul Rohatgi on February 4. At that time, Rohatgi had orally assured the bench that his client would not leave the country. With the written affidavit now submitted, the commitment has become legally binding. The development is part of proceedings arising from a petition seeking court-monitored investigation into alleged financial irregularities involving ADAG companies.
Petition alleges Rs 40,000 crore loan fraud
The matter stems from a petition filed by former bureaucrat EAS Sarma. The plea alleges that companies under the ADAG umbrella were involved in loan fraud exceeding Rs 40,000 crore in connivance with certain banks. The petitioner has sought a Supreme Court-monitored probe to ensure transparency and accountability.
Key points raised in the petition include:
- Alleged large-scale diversion of bank loans
- Demand for court-supervised investigation
- Alleged collusion between company officials and bank authorities
The Supreme Court bench has treated the allegations seriously and issued directions to investigating agencies.
Court seeks probe into bank officials
During the hearing, the bench instructed agencies to also examine the possible role of bank officials. The court asked investigators to determine whether there was any collusion or negligence in sanctioning and disbursing loans. The directions indicate that the probe will not be limited to corporate executives alone but may also cover lending institutions.
The agencies involved in the investigation are:
- Enforcement Directorate under the Prevention of Money Laundering Act
- Central Bureau of Investigation
Findings on fund diversion and loan irregularities
The ED, in its preliminary findings, has alleged large-scale diversion of funds in Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL). Between 2017 and 2019, Yes Bank invested Rs 2,965 crore in RHFL and Rs 2,045 crore in RCFL.
By December 2019, these exposures reportedly turned into non-performing assets. The outstanding dues include:
- Rs 1,353 crore in RHFL
- Rs 1,984 crore in RCFL
- Total loss to Yes Bank exceeding Rs 2,700 crore
According to the ED, the funds were allegedly diverted to other group companies.
Intentional control failures flagged by ED
Investigators have also flagged serious irregularities in the loan approval process. In several instances, loans were allegedly applied for, approved and disbursed on the same day. Field checks and internal meetings were reportedly skipped, while certain documents were found blank or undated. The ED has termed these lapses as “intentional control failures”.
The probe is being conducted under Section 5(1) of the Prevention of Money Laundering Act. Attachment orders were issued on October 31, 2025. With Ambani’s affidavit now on record, the Supreme Court proceedings are expected to continue alongside parallel investigations by central agencies.
