Anil Ambani, once hailed as a symbol of India’s new-age entrepreneurship, is today a shadow of his former self. The younger son of industrialist Dhirubhai Ambani, he inherited a substantial share of the Reliance empire after the family’s 2005 split. His ventures in telecom, infrastructure, power, and finance promised to create a diversified conglomerate to rival his elder brother Mukesh’s Reliance Industries. But years of debt, aggressive expansions, and mounting competition eroded his companies, leaving the Reliance Anil Dhirubhai Ambani (ADA) Group struggling under financial distress. That corporate decline has now converged with growing legal scrutiny — the latest being a new Enforcement Directorate (ED) case linked to an alleged ₹2,929 crore fraud.
The Fresh Case Against RCom and Ambani
The Enforcement Directorate has registered a money laundering case against Anil Ambani, Reliance Communications (RCom), and others in connection with an alleged fraud at the State Bank of India (SBI). The probe, under the Prevention of Money Laundering Act (PMLA), stems from a First Information Report (FIR) filed by the Central Bureau of Investigation (CBI) in August 2025.
According to the FIR, RCom and its director Anil Ambani, along with unnamed public servants, caused wrongful losses to SBI. The CBI searched Ambani’s Mumbai residence and corporate offices of RCom while investigating claims that bank loans were misused or diverted. Officials say the forensic audit of October 2020 had already flagged major irregularities in loan utilization.
How Banks Classified RCom as Fraudulent
The case gained momentum when SBI, on June 13, 2025, formally tagged RCom and Anil Ambani as “fraudulent,” a decision later reported to the Reserve Bank of India. In its communication, SBI argued that the company had failed to explain deviations from loan terms and conditions, as well as anomalies observed in the account of Reliance Capital Limited (RCL), another ADA group company.
Soon after, two more lenders — Bank of India and Bank of Baroda — also classified RCom’s loan accounts as fraudulent, explicitly naming Anil Ambani as its former promoter and director. This made him one of the few top-tier corporate leaders in India whose name has been formally linked to multiple fraud notices by state-run banks.
Expanding Investigations
Acting on the CBI’s findings, ED has widened its probe to cover nearly 20 public and private banks that lent to ADA group companies. The agency is seeking details of loan sanctioning processes, credit assessments, and potential fund diversion through shell entities or offshore structures.
Long-time Ambani aide Amitabh Jhunjhunwala has been questioned multiple times in relation to this and other probes, including a larger investigation into alleged ₹17,000 crore loan frauds involving ADA group firms. ED has also examined the controversial loans extended by Yes Bank between 2017 and 2019, where promoters allegedly received payments in exchange for sanctioning facilities to Reliance companies.
Ambani’s Defence
Ambani has consistently rejected the accusations. A spokesperson stated that the allegations are baseless and politically motivated, pointing out that the transactions in question date back more than a decade. “At the relevant time, Mr. Ambani was a non-executive director of the company with no role in day-to-day management,” the statement said. The defence underscores what Ambani has long argued: that he has been unfairly targeted despite stepping down from several company boards in recent years.
Wider Implications for Corporate Governance
Beyond Ambani’s personal fate, the unfolding case raises systemic questions about corporate governance, risk assessment in banks, and the efficacy of forensic audits. That multiple public sector banks have independently classified the accounts as fraudulent highlights growing regulatory vigilance. It also reflects the broader crackdown on corporate borrowers accused of willful default or diversion of funds, an area where Indian authorities have been under pressure to act decisively.
The Fall of a Tycoon
For Anil Ambani, once celebrated as one of the world’s richest men, the steady collapse of his businesses and the weight of investigations mark a dramatic reversal of fortune. His telecom venture RCom went through insolvency, his infrastructure arm struggled to service debts, and his financial services companies faced regulatory interventions. With every new case, the gap between his once-towering corporate presence and today’s embattled position becomes starker.
A Test Case for Accountability
The ED’s fresh action places Anil Ambani and his companies back in the legal and public spotlight. While Ambani maintains his innocence and calls the cases a misrepresentation of his role, the scrutiny reflects a deeper shift in how India addresses corporate fraud. As investigators pursue trails of alleged fund diversion, the outcome will not only shape Ambani’s legacy but also signal how far India’s financial system is willing to go in holding powerful business figures accountable.
If proven, the charges could become one of the largest corporate fraud cases in India’s recent history. If not, the long saga of allegations and insolvencies may still leave an indelible mark on Ambani’s reputation — a reminder that legacies built on ambition must ultimately withstand the test of governance and transparency.
(With agency inputs)
