The government has launched a This time, the probe has been handed over to the Serious Fraud Investigation Office (SFIO), the Ministry of Corporate Affairs’ (MCA) specialised investigative wing.
The decision comes after earlier scrutiny by the Enforcement Directorate (ED), the Central Bureau of Investigation (CBI) and market regulator, Sebi. Now, the focus is on whether there were violations of corporate governance rules and diversion of funds across group companies.
According to people familiar with the development, the MCA received multiple alerts from auditors and financial institutions. These alerts highlighted possible irregularities in the financial statements of certain ADAG companies. Some red flags had also surfaced during forensic audits ordered by banks after the loan defaults of Reliance Capital and Reliance Communications (RCom).
Officials said the SFIO investigation aims to closely examine possible financial wrongdoing. The probe will look into whether company funds were diverted or syphoned off, if shell entities were used to route money, and whether any lapses or deliberate omissions were made by banks, auditors, or credit rating agencies.
A senior government official said the SFIO would map the money trail, and if shell or fraudulent companies are found, they may be struck off or prosecuted.
At least four entities from the group are under direct SFIO scrutiny. These are: Reliance Infrastructure (RInfra), Reliance Communications (RCom), Reliance Commercial Finance Ltd (RCFL) and CLE Pvt Ltd.
Other Reliance Group entities could be examined if links to fund movement are detected.
The probe escalation follows aggressive enforcement actions by the ED. In the past week, the ED attached assets worth nearly Rs 7,500 crore in connection with alleged fund diversion. These include more than 132 acres in Dhirubhai Ambani Knowledge City at Navi Mumbai, a residential property at Pali Hill in Mumbai’s Bandra, and the Reliance Centre in New Delhi.
Investigators allege that between 2010 and 2012, certain group entities raised thousands of crores in loans from Indian banks. Large portions of these funds were reportedly used to repay older loans, transferred to related parties, invested in mutual funds and later withdrawn, and used for “evergreening” debt.
According to the ED, around Rs 13,600 crore was diverted through “layered transactions”. Five banks have already marked RCOM’s loan accounts as fraudulent due to suspicious fund movements.
The Anil Ambani Group has previously denied any wrongdoing.
It also stated that Anil Ambani has not served on its board for over three years.
The SFIO will now examine the financial flow between companies, identify individuals responsible for key decisions, and determine whether corporate laws were violated.
Based on the findings, penalties, prosecution, or director disqualification may follow.
In other words, the government’s move signals a deeper push for accountability. With multiple agencies—SFIO, ED, CBI and SEBI—looking into different aspects of the group’s finances, Anil Ambani’s Reliance Group faces mounting legal and financial pressure.
The SFIO probe will be a crucial step in uncovering whether public money was misused—and who was responsible for it.