ED Cracks Down on RAAGA: A Deep Dive into Alleged Money Laundering and Loan Scandals

In a sweeping operation on Thursday, the Enforcement Directorate (ED) raided 35 locations linked to the Reliance Anil Ambani Group as part of a money laundering investigation involving 50 companies and over 25 individuals, according to official sources. The case stems from an ED probe initiated after a First Information Report (FIR) was filed by the Central Bureau of Investigation (CBI), alleging financial misdeeds by RAAGA companies.

Other involved agencies, including the National Housing Bank, SEBI, and the National Financial Reporting Authority, have contributed data to the probe. Preliminary findings by the ED suggest a complex scheme orchestrated to divert and misuse public funds by baiting banks and investors. The investigation is also scrutinizing potential bribes to bank officials, including executives linked to Yes Bank Limited.

The probe has unveiled potential illegal loan diversions amounting to Rs 3,000 crores between 2017 and 2019. Findings suggest that funds were transferred to Yes Bank promoters' entities just before loans were approved. Credit irregularities like back-dating, lack of due diligence, and misdirected funds are at the center of the scandal, accompanied by SEBI's insights into suspicious activities by RAAGA.

(With inputs from agencies.)