The raids followed First Information Reports (FIRs) filed by the Central Bureau of Investigation (CBI), after which the ED initiated its probe. Searches were conducted at over 35 locations, covering 50 companies and 25 individuals, under Section 17 of the Prevention of Money Laundering Act (PMLA).
According to officials, the ED has found evidence of a “well-planned scheme to siphon off public money”, allegedly involving cheating banks, shareholders, and investors. Information was also shared earlier by institutions such as the National Housing Bank, SEBI, NFRA, and Bank of Baroda.
Bribe-for-Loan Nexus Under Scanner
Preliminary findings suggest that Yes Bank promoters received funds just before sanctioning loans to Reliance Anil Dhirubhai Ambani Group (RAAGA) entities between 2017 and 2019. The ED suspects bribes were paid to Yes Bank officials to secure the loans, which were later diverted to shell companies and other group entities in violation of loan terms.
The agency has flagged multiple irregularities, including:
- Loans to financially weak entities
- Back-dated Credit Approval Memorandums (CAMs)
- No proper documentation or due diligence
- Borrowers sharing common addresses and directors
- Evergreening of loans and misrepresentation of financials
- Advances made on sanction day and even prior to approvals
The ED is also probing significant loan exposure by Yes Bank to RAAGA companies, which reportedly rose from ₹7,825 crore in FY 2017-18 to ₹8,670.80 crore in FY 2018-19.
The investigation remains ongoing as the agency examines violations of banking norms, bribery allegations, and fund diversion patterns.
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