Investigative news platform Cobrapost has created a major stir with its latest report titled “The Lootwallahs: How Indian Business Is Robbing Indians – Part I.” The disclosure accuses one of India’s most well-known conglomerates, the Reliance ADA Group (R-ADAG), led by Anil Ambani, of diverting and disguising funds worth more than ₹41,000 crore through an elaborate financial network.
Cobrapost describes this as one of the largest corporate scams ever uncovered in India. The report claims that this was not a one-time case of irregular accounting but a sophisticated system involving shell companies, fake loans, and circular transactions. These actions allegedly allowed the group to hide losses, inflate profits, and project financial stability while struggling internally.
The heart of the investigation
According to Cobrapost, the alleged scam was built on a large network of more than 100 shell companies created by or linked to the Reliance ADA Group. These companies existed mostly on paper, had no staff or real operations, and were often registered at the same addresses. Their only purpose was to circulate money within the group and make it appear as though multiple independent entities were engaging in genuine business.
This process, known as round-tripping, allowed the same money to appear several times on different balance sheets. By repeating this loop, the group created a false image of profitability and avoided showing real losses.
The flow of money and the scale of the operation
The report traces over ₹28,874 crore in transactions that moved through these shell entities. The money reportedly came from large Reliance ADA Group companies such as Reliance Communications, Reliance Capital, and Reliance Infrastructure. It was then transferred to smaller companies within the group and disguised as loans or investments before being sent back.
According to the report, this was not just creative accounting—it was a deliberate system designed to mislead investors, regulators, and lenders. The funds included money borrowed from public sector banks, foreign institutions, and mutual funds. Instead of being used for legitimate business projects, a major portion was allegedly diverted internally to maintain the illusion of financial health.
The paper trail
Cobrapost says its findings are based entirely on official documents available in the public domain, including records from the Ministry of Corporate Affairs (MCA) and the Registrar of Companies (RoC).
Many firms listed the same directors and even shared identical addresses, including small office spaces or residential flats. Several companies reported large loans and investments without any explanation of business activity. In some cases, the same money appeared in the accounts of multiple entities within days, creating a pattern of movement that pointed to circular financing rather than real trade.
Report claims these documents reveal how the Reliance ADA Group built a structure where the same funds were moved around repeatedly to show higher revenues and net worth. This made the companies look profitable on paper, even when their debt levels were rising and operational income was falling.
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The ₹41,000 crore allegation
The report estimates the total sum involved in the alleged network of money movements at ₹41,000 crore. It claims this figure includes both domestic transactions and foreign flows linked to the Reliance ADA Group. The investigation suggests that funds were not only routed through Indian shell firms but also through offshore entities registered in tax-friendly jurisdictions.
The disclosure accuses the group of using these methods to keep its credit ratings intact and to continue accessing loans and investments despite facing heavy losses. Cobrapost describes this as a “corporate mirage built on circular accounting,” where paper profits hid the group’s financial troubles from regulators and investors.
The company’s response
The Reliance ADA Group strongly denied all allegations made in the report. In its official statement, the company called the claims false, baseless, and malicious, saying they were intended to damage its reputation and affect investor confidence. It stated that all transactions had been audited by statutory authorities and conducted in accordance with Indian law.
The group also criticised Cobrapost for not seeking its response before publishing the report, calling this a breach of journalistic ethics. It said the data cited in the investigation was old, taken out of context, and already available in the public domain. According to the company, Cobrapost’s story misrepresents legitimate business activity as wrongdoing.
As of now, no official agency, such as the RBI, SEBI, or Enforcement Directorate, has confirmed any investigation into the matter. However, the allegations have placed the spotlight back on corporate transparency and the accountability of big business in India.