Winning Bizness Desk
Mumbai.Mumbai Police’s Economic Offences Wing (EOW) has registered a fraud and criminal conspiracy case against former directors of companies linked to the Anil Ambani Group. The case was filed at Cuffe Parade Police Station after allegations surfaced that the accused secured a loan of nearly ₹150 crore through fake documents and later diverted the money to other companies within the group. Investigators claim the loan was never repaid, causing major financial losses to the bank. The action follows a complaint filed by Axis Bank Vice-President Prakash Prabhakar Rao.
Axis Bank complaint triggers fresh probe
According to EOW sources, the accused allegedly worked together to cheat the bank by presenting misleading financial records and false documents. Officials said the companies involved were linked to the Anil Dhirubhai Ambani Group (ADAG). This is the second FIR registered on the basis of Axis Bank’s complaint against firms associated with the group.
Key allegations in the case include:
- Fake financial documents were allegedly submitted to secure the loan
- Bank officials were allegedly given misleading information about RHFL’s financial health
- The sanctioned loan amount was reportedly diverted to related group companies
- The accused later defaulted on repayment obligations
Officials believe the conspiracy was carefully planned to misuse banking funds and shift money through multiple corporate accounts.
Loan diversion allegedly continued for years
Investigators said the alleged fraud took place between January 2010 and November 2019. During this period, former whole-time directors of Reliance Home Finance Limited (RHFL), directors of beneficiary companies linked to ADAG, and other senior officials allegedly coordinated the operation.
Police sources claimed that once the bank released the ₹150 crore loan, the funds were transferred to accounts belonging to associated firms instead of being used for the approved purpose. Authorities are now examining transaction trails, company records and internal approvals to understand how the money moved across entities.
Officials are also checking whether more individuals were involved in approving or processing the transactions inside the companies concerned.
Earlier FIR registered in March
This is not the first criminal case linked to the matter. On March 12 this year, the EOW had registered another FIR against companies associated with Anil Ambani and several directors on similar allegations of cheating and financial irregularities. That case was also based on a complaint filed by Axis Bank Vice-President Prakash Prabhakar Rao.
Investigators are now comparing both FIRs to identify common financial patterns and links between the accused firms. Sources said the probe may widen if more evidence of fund diversion or corporate fraud emerges during questioning.
Important developments so far:
- Two FIRs have now been filed against companies linked to the group
- Both complaints were submitted by Axis Bank officials
- EOW is examining bank records and company transactions
- Former directors and officials remain under investigation
What EOW and loan diversion mean
The Economic Offences Wing is a specialised branch of the police that investigates large financial crimes, including corporate fraud, forgery, tax evasion and banking scams. Such agencies usually handle cases involving huge monetary transactions and multiple companies.
Loan diversion refers to a situation where a company takes a bank loan for a particular business purpose but uses the money elsewhere. In many such cases, funds are shifted to sister concerns or related firms instead of being used for the project for which the loan was approved. Financial experts say such practices weaken trust in the banking system and increase the burden of bad loans.
Anil Ambani is the founder of Reliance Communications. No official statement from him or the companies concerned had been issued till the filing of this report.
