Sign in Subscribe
Stock prices

Reliance Power and Infra Stocks Plunge After ED Raids Linked to Loan Fraud

Strategic Insights

— 2 min read

Anil Ambani-led Reliance Group has been facing intense scrutiny following a massive search operation by the Enforcement Directorate (ED) across 35 locations in Mumbai. The raids are linked to alleged loan fraud of around Rs 3,000 crore from Yes Bank between 2017 and 2019. The ED suspects a "well-planned scheme" to siphon off public money by cheating banks, shareholders, and investors.

The ED is also investigating a mysterious entity, "C Company," which was allegedly not disclosed as a related party, for its role in diverting large sums of money from Reliance Infrastructure to other Anil Dhirubhai Ambani Group companies. The ED is further probing the allegations of bribes and loans, with claims that Yes Bank promoters received funds in their accounts just before loan disbursements to Reliance Group entities.

The company has responded to the allegations, stating that the loans were sanctioned on merit and approved through a proper credit committee process involving more than 30 individuals. Reliance has also highlighted that Anil Ambani resigned from RCOM's board in 2019 and had no role in its daily operations.

Key Takeaways:

  • **Alleged Loan Fraud:** The Enforcement Directorate (ED) suspects a "well-planned scheme" to siphon off public money by cheating banks, shareholders, and investors in a loan fraud of around Rs 3,000 crore from Yes Bank between 2017 and 2019.
  • **C Company Under Scrutiny:** A mysterious entity, "C Company," is being investigated for its role in diverting large sums of money from Reliance Infrastructure to other Anil Dhirubhai Ambani Group companies.
  • **Bribery Angle:** ED is investigating a potential nexus of bribes and loans, with allegations that Yes Bank promoters received funds in their accounts just before loan disbursements to Reliance Group entities.
  • **Reliance's Response:** The company has stated that the loans were sanctioned on merit and approved through a proper credit committee process involving more than 30 individuals. Anil Ambani resigned from RCOM's board in 2019, and the company has no role in its daily operations.
  • **Stock Performance:** Reliance Power's share price has fallen by over 11% in the last five trading sessions, while Reliance Infra's share price has corrected by 12% in the last five trading days.
  • **Fraud Classification:** SBI has classified Reliance Communications Ltd as "fraud" on June 13, according to the Minister of State for Finance, Pankaj Chaudhary.
  • **Court Rulings:** Canara Bank withdrew its fraud classification against RCOM on July 10, 2025, in the Bombay High Court, while the Delhi High Court stayed SBI's previous attempt to classify Reliance Communications as "fraud" in November 2020.

Statistics:

  • **Loan Fraud Amount:** Rs 3,000 crore (alleged loan fraud from Yes Bank between 2017 and 2019)
  • **Stock Performance:**

+ Reliance Power's share price has fallen by over 11% in the last five trading sessions

+ Reliance Infra's share price has corrected by 12% in the last five trading days

+ Reliance Power has given a return of 55% in the past six months

+ Reliance Infra has given a return of 37% in the last six months

  • **Fraud Classification:** The SBI had previously attempted to classify Reliance Communications as "fraud" in November 2020, which was stayed by the Delhi High Court.

Sources:

  • IE Online Media Services Pvt. Ltd., distributed by Contify.com (2025)

Read more