Agents executed the asset-freezing measures under Section 5 of the Prevention of Money Laundering Act, signalling a marked escalation in regulatory scrutiny of the Reliance Group and its affiliates. The properties span residential and commercial holdings in Mumbai’s Pali Hill, as well as assets in Delhi, Noida, Hyderabad, Pune, Chennai and Goa. According to one government source, the value of assets attached exceeds 30 billion rupees.
The probe centres on alleged large-scale fund diversions and mis-applied loans. Investigators report that between 2017 and 2019, over ₹5,000 crore was invested by Yes Bank in two Reliance-group finance subsidiaries — Reliance Home Finance Ltd. and Reliance Commercial Finance Ltd. — and that a substantial portion of these funds may have been routed into group-linked entities via indirect mechanisms that bypassed securities-regulator norms. The ED has flagged control failures such as minimal documentation, disguised routing and fund releases before sanction of loans.
The business group under Ambani had earlier drawn regulatory attention following its telecom arm Reliance Communications filing a ‘fraud’ tag by State Bank of India, and a flurry of searches at RAAGA-linked premises in July. The current attachment drive suggests investigators believe they have moved to the stage of locking down assets, rather than purely gathering records.
Legal sources indicate that the ED action is being mounted under multiple angles: possible routing of public funds into shell entities, suspicious loan processing by group-finance firms and potential complicity or negligence by bank officials. The group rejects that its normal business operations have been affected. In a filing the communications arm maintained it “continues to operate in the normal course of business.”
Corporate governance analysts say the freeze of such high-value properties is rare and signals a sharp regulatory reset for conglomerate-linked financial houses. One analyst noted that until now, high-profile probes have triggered searches and document seizures but rarely simultaneous asset-attachments of this scale. The wide geographic spread of the assets—from Mumbai to Hyderabad to Goa—implies a network of underlying transactions rather than isolated points of suspicion.
The business implications for the group may include higher borrowing costs, increased scrutiny from lenders and potential covenant triggers in loan agreements. Some fund-raising plans may need to be recalibrated if assets remain frozen or if underlying allegations court formal prosecution. On the other hand, the early move to attach assets means the regulator is prioritising control of value rather than waiting for final adjudication—a tactic that increases leverage on the group. Market commentators note that the step may accelerate asset realisations or restructuring conversations within the group as they seek to maintain operations.
Finance ministry officials emphasise that attachment is not a presumption of guilt but a safeguard to prevent dissipation of assets while legal proceedings continue. Several senior ranks within the ED observe that investigations involving large-scale fund flows typically transition from search to attachment only when credible leads on diversion emerge. In this case, public filings, disclosures from banks and internal loan-data patterns appear to have triggered the attachment phase. The next stage could include summons of promoters, interrogation of board members and formal charge-sheets under the PMLA. Observers note that the sharper the attachment action, the higher the stakes for the business group in mounting a defence.
For the group’s stakeholders—shareholders, lenders, vendors—the move raises questions about continuity, financial transparency and risk exposure. While the companies maintain operations, the reputational burden and heightened regulatory pressure may slow expansion or refinancing initiatives. The path ahead will be shaped by whether the group can convincingly address allegations and restructure exposure in time to reassure markets and creditors.