ED questions Jai Anmol Ambani in Yes Bank probe; Delhi HC scraps Union Bank fraud tag

The Enforcement Directorate (ED) on Friday questioned Jai Anmol Ambani, son of industrialist Anil Ambani, in Delhi as part of a money laundering investigation linked to an alleged bank loan fraud involving Yes Bank, according to official sources.

Officials said the statement of the 34-year-old was recorded under the Prevention of Money Laundering Act (PMLA) and is likely to continue on Saturday. The probe relates to the exposure of Yes Bank to companies of the Reliance Anil Dhirubhai Ambani Group (ADAG), which reportedly rose sharply from around Rs 6,000 crore as on 31 March 2017, to nearly Rs 13,000 crore within a year.

According to the agency, a substantial portion of the lending to entities such as Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL) turned into non-performing investments, resulting in alleged losses of about Rs 3,300 crore to the bank. Anil Ambani has previously been questioned by the ED in connection with related investigations involving group companies.

Separately, the Delhi High Court on Friday set aside a decision by Union Bank of India declaring the bank account of a company owned by Jai Anmol Ambani as “fraudulent”, citing procedural lapses. Justice Jyoti Singh held that no show cause notice had been properly served on the petitioner before the account was classified as fraud, violating principles of natural justice.

The court noted that the notice was sent to an address the company had vacated in 2020, concluding that Anmol Ambani had been denied an opportunity to respond. While quashing the bank’s declaration, the court clarified that Union Bank of India was free to issue a fresh show cause notice, furnish relevant documents, and pass a new order after considering the petitioner’s reply.

The High Court was hearing a plea challenging the bank’s October decision to label the account as fraudulent without prior notice or hearing, relying on Supreme Court rulings mandating due process before such classifications. Senior advocate Rajiv Nayar, appearing for Anmol Ambani, argued that the bank’s own affidavit confirmed the notice was sent to an outdated address.

Meanwhile, the Central Bureau of Investigation (CBI) has also registered a case against Jai Anmol Ambani and RHFL for alleged cheating of Union Bank of India, causing an estimated loss of nearly Rs 228 crore. The case stems from credit facilities of around Rs 450 crore availed by RHFL, which later turned non-performing after the company allegedly failed to meet repayment obligations.

The parallel actions by the ED, CBI and the High Court ruling underline the intensifying legal and regulatory scrutiny surrounding bank lending to Reliance Group-linked entities, even as courts reiterate the need for strict adherence to due process.

With PTI Inputs