The Anil Ambani-led Reliance Group has published a white paper to address the allegations of financial irregularities involving Yes Bank and Reliance Home Finance Limited (RHFL).

The clarification, issued on Thursday, referred to the enforcement action related to transactions as more than eight years old.

“These reports appear to pertain to allegations in relation to transactions involving Yes Bank and Reliance Home Finance, which are more than 8 years old,” the group stated.

The Enforcement Directorate (ED) raided as many as 35 locations of companies linked to Anil Ambani on Thursday to probe allegations of "gross violations" in Yes Bank loan approvals to Reliance Anil Ambani Group companies, such as back-dated credit approval memorandums (CAMs) and investments proposed without any due diligence/credit analysis that violates banks credit policy.

According to their preliminary findings, loans worth approximately Rs 3,000 crore were allegedly diverted from Yes Bank between 2017 and 2019.

The ED is reportedly probing a link between these loans and payments made to entities related to Yes Bank promoters.

Reliance Group said: “Loans extended by Reliance Home Finance Limited (RHFL) to certain private companies of the promoter of Yes Bank were sanctioned on merit, after following the due process, and were duly approved by a credit committee comprising more than 30 individuals. These loans were fully secured and have been fully repaid, including interest and the outstanding is zero.”

Another allegation concerns backdated CAMs and loans being sanctioned without due diligence, which were allegedly diverted to group and shell companies.

“Yes Bank had granted loans to Reliance entities after following the due process. The entire exposure of Reliance Group companies is fully secured and was undertaken strictly in the ordinary course of business. All transactions between Reliance Group companies and Yes Bank have been carried out in complete compliance with applicable laws, regulations, and financial norms,” the group said.

Reports also suggest the Securities and Exchange Board of India (Sebi) shared its findings with the ED, raising concerns about a dramatic rise in RHFL’s corporate loans between FY 2017–18 and FY 2018–19, including irregular approvals and process violations.

Reliance pointed to an existing legal process: “Allegations similar to those referred to in the media reports were addressed in an order passed by SEBI in August 2024. This order has been challenged and is currently pending adjudication before the Hon’ble Securities Appellate Tribunal (SAT). The matter is thus sub-judice.”

The company also noted that the debt resolution process of RHFL led by Bank of Baroda has been concluded, following a March 2023 judgment by the Supreme Court.

A separate issue has emerged with the State Bank of India (SBI), which recently classified Reliance Communications (RCOM) as a “fraud” account. Reliance has contested this move, particularly the personal impact on Anil Ambani.

“State Bank of India (SBI) did not grant Anil D. Ambani an opportunity for a personal hearing before its committee made its decision in the matter. Furthermore, SBI had dropped similar allegations against other notices on identical grounds; however, Ambani was not afforded the same treatment. This failure on the part of SBI amounts to a serious breach of the principles of natural justice and runs contrary to established judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court, as detailed in the attached document,” it added.

“It is important to note that Mr. Anil D. Ambani served as a non-executive director on the board of Reliance Communications Limited (RCOM) and was not involved in its day-to-day operations, which were managed by the company’s key managerial personnel. Additionally, SBI did not provide Mr. Ambani with the underlying documents forming the basis of the Forensic Audit Report (FAR), thereby depriving him of a fair opportunity to assess and respond to the allegations,” it said.

The group further noted that Canara Bank, a member of the lenders consortium along with SBI, “has unconditionally withdrawn the fraud classification of RCOM accounts on 10 July 2025 in the Bombay High Court.”

Anil Ambani resigned from RCOM’s board in 2019 and, as of now, “is not on the board of any Reliance Group companies. RCOM and RHFL are not part of the Reliance Group.”

The group clarified that only two companies, Reliance Infrastructure Ltd and Reliance Power Ltd, currently form the Reliance Group. It also emphasised that the ongoing probe has no bearing on their functioning.

“The said actions have absolutely no impact on the business operations, financial performance, employees, shareholders, or any other stakeholders of Reliance Infrastructure Limited and Reliance Power Limited or any other continuing Reliance Group entity,” it said.

After the ED conducted searches at 35 premises linked to the group, Reliance Power separately stated: “It is clarified that Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM has been undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years.”