The Enforcement Directorate (ED) has filed a money laundering case against former Reliance Group Chairman Anil Ambani, Reliance Communications (RCom), and others in connection with an alleged Rs 2,929 crore bank fraud.

Officials said the ED’s move is based on a case registered by the Central Bureau of Investigation (CBI) last month. The CBI had accused Mr. Ambani and RCom of causing losses to the State Bank of India (SBI) and had also carried out searches at properties linked to him.

CBI officials searched six locations in Mumbai connected to Mr. Ambani and RCom. The raids were aimed at collecting proof of whether the bank loans were diverted or misused.

The SBI had earlier declared Mr. Ambaniand RCom as “fraud” on June 13 and informed the Reserve Bank of India (RBI) on June 24.

In its letter to RCom, the bank said: "We have taken cognisance of the responses to our Show Cause Notice and after due examination of the same, it is concluded that sufficient reasons have not been provided by the respondent, to explain the non-adherence to the agreed terms and conditions of the loan documents or the irregularities observed in the conduct of the account of RCL (Reliance Capital Limited) to the satisfaction of the bank."

The ED has also been questioning Mr. Ambani in another money laundering case connected to Yes Bank loans. The agency suspects that around Rs 3,000 crore in loans given to Reliance Group companies between 2017 and 2019 were diverted.

Investigators also found that Yes Bank promoters received payments just before these loans were approved, suggesting a possible quid pro quo deal.