Archive · 24 Jul 2025
ED Probes Reliance Investments, Alleged Fund Misappropriation
Imagine a company, Reliance, invested a lot of money in a bank's special bonds.
These bonds don't have a set end date.
The money was then allegedly moved around in a suspicious way, and the bonds became worthless.
Investigators think this money belonged to mutual fund investors.
The company also used a secret way to move money, and lost a lot of money in the process.
The government is now looking into this, and raided many places to find out what happened.
ED sources allege Reliance Mutual Fund invested Rs 2,850 crore in YES Bank's AT-1 bonds, which were later written off.
The ED investigation, based on SEBI information, found Reliance Infrastructure diverted funds to Reliance Group firms through an undisclosed related party.
Reliance Infrastructure allegedly took a loss of Rs 5,480 crore, with only Rs 4 crore received in cash.
At least Rs 6,499 crore was settled via asset transfer, mainly to non-operational discoms.
ED searched over 35 premises in Mumbai belonging to multiple companies and individuals.
- Who
- The Enforcement Directorate (ED) is investigating Reliance Mutual Fund, Reliance Infrastructure, YES Bank, and related parties.
- What
- ED is investigating alleged financial irregularities involving Reliance Mutual Fund's investment in YES Bank bonds and diversion of funds by Reliance Infrastructure.
- When
- The events are ongoing, with recent ED raids.
- Where
- Mumbai, and involving financial transactions.
- Why
- To investigate suspected quid pro quo, loan diversions, and potential financial crimes.
Authorities
Reliance Companies
Investment and Financial Impact
Authorities
ED alleges that Reliance Mutual Fund invested in AT-1 bonds of Yes Bank, later written off, potentially harming investors.
Reliance Companies
The implicated Reliance companies deny any negative impact and suggest the allegations pertain to issues from over 10 years ago.
- Investment Amount
- Rs 2,850 crore (Reliance MF in YES Bank)
- Alleged Loss
- Rs 5,480 crore (Reliance Infrastructure)
- Cash Received
- Rs 4 crore
- Settlement Method
- Asset transfer (Rs 6,499 crore)
- Entities Searched
- 50 companies and 25 people