Anil Ambani-linked Raids Send Reliance Shares Down 10%
Shares of Anil Ambani’s Reliance Infra and Reliance Power have fallen nearly 10% over just two trading sessions. The drop came right after Enforcement Directorate teams carried out raids at locations linked to the business group. These actions were part of an ongoing investigation into financial dealings, adding fresh pressure on companies already battling heavy debt and weak earnings.
We have seen market reactions like this before: sudden news sparks selling, and investors look for clarity. In this case, the fall highlights how sensitive Reliance ADA Group stocks remain to legal developments. It also raises questions about the group’s financial stability and what might come next for its lenders, bondholders, and shareholders.
Background on Anil Ambani and Reliance ADA Group
Anil Ambani runs the Reliance Anil Dhirubhai Ambani Group (ADAG). He controls businesses including Reliance Power and Reliance Infrastructure. After a split in 2005, his group has focused on energy, infrastructure, telecom, and finance. Many of its companies have faced debt issues and regulatory action in recent years.
Details of the Raids
On July 24 and 25, 2025, the ED searched 35 to 50 premises across 50 entities and 25 individuals tied to the ADAG group. The probe targets alleged money laundering in a Yes Bank ₹3,000 crore loan fraud. Agencies involved include the ED, CBI, SEBI, NHB, NFRA, and Bank of Baroda. Allegations include loan evergreening, shell company linkages, and possible bribes.
Market Reaction and Stock Performance
Both Reliance Power and Reliance Infrastructure shares locked in 5% lower circuits for two straight sessions, resulting in a combined drop of nearly 10%. Reliance Power’s share price slipped to ₹56.72, and Reliance Infrastructure declined to around ₹342 during the market session. Over one month, Reliance Power lost about 15% value, erasing earlier gains from 2025.
Financial and Legal Context
The ED alleges that between 2017 and 2019, roughly ₹3,000 crore in loans from Yes Bank were misused. The allegations primarily focus on Reliance Communications (RCom) and Reliance Home Finance (RHFL). RCom is accused of a ₹14,000 crore loan fraud, and was deemed “fraudulent” by SBI. RHFL’s corporate loan book surged sharply in 2019. These firms are independent of Reliance Power and Reliance Infrastructure.
Distinction from Mukesh Ambani’s Reliance Industries
It is important to clarify that this investigation concerns Anil Ambani’s ADAG group and not Mukesh Ambani’s Reliance Industries Limited (RIL). Reliance Power and Reliance Infrastructure stated that they operate as independent listed companies with no financial or business ties to RCom or RHFL, and Anil Ambani holds no board position in them.
Broader Implications for the Market
We see that these developments amplify concerns around corporate governance and regulatory oversight in India. Lenders, bondholders, and investors may become cautious about any group with legal exposure. While analysts weigh technical indicators and the possibility of recovery beyond ₹70 for Reliance Power, uncertainty remains as long as investigations continue.
Conclusion
In brief, ED raids involving Anil Ambani caused Reliance Infrastructure and Reliance Power shares to plunge by about 10%. The probe centers on ₹3,000 crore in Yes Bank loans allegedly misused via shell entities. Both companies deny any impact and highlight no operational ties to RCom or RHFL. Still, the unfolding probe poses a warning around group affiliations and investor clarity in India’s markets.
FAQS:
Reliance Power’s share price fell following the Enforcement Directorate raids at locations connected to Anil Ambani. The probe involves a large Yes Bank loan fraud case. This created fear and selling pressure.
Anil Ambani and his family hold the largest stake in Reliance Power through the Reliance ADA Group. They control the company even though public investors also own shares.
No, Anil Ambani is not debt-free. He declared himself bankrupt in a UK court in 2020. Many group companies still face heavy debt and loan default cases.
Description:
This content is for informational purposes only and not financial advice. Always conduct your research.