July 25: Reliance Group in ₹3,000 Cr Scam, Trump's Tech warning to India

Good Morning 🇮🇳

In a Davidbhai vs Goliath moment for the Indian french fries industry Ahmedabad’s McPatel Foods is taking McDonald’s to court over the prefix “Mc.” The fast food giant is objecting to the use of the “Mc” in McPatel, but the “Ohh! Potato” fries maker is arguing that it just means “son of” and honours the Patel community. Wonder if McDowel’s is going to join this fight.

Now, let’s get into the McDispatch! …. no doesn’t work 🚀

Today’s reading time is 6 mins.

A day after healthy gains, the Indian market ended on a negative note on July 24, with both Sensex and Nifty down. Delayed India-US trade deal, foreign capital outflow, and a lack of fresh market triggers being contributing factors.

The Enforcement Directorate (ED) on July 24, 2025, conducted large-scale raids at over 35 locations, targeting around 50 companies and 25 individuals linked to the Reliance Anil Ambani Group under the Prevention of Money Laundering Act. The action stems from allegations that loans totalling approximately ₹3,000 crores taken from Yes Bank between 2017 and 2019 were siphoned off illegally. This investigation is backed by multiple FIRs from the CBI and inputs from regulatory bodies like SEBI, National Housing Bank (NHB), National Financial Reporting Authority (NFRA), Bank of Baroda, and even disclosures from Yes Bank itself.

The heist: The probe suggests a “well-planned scheme” involving the diversion of loan funds into promoter-linked entities. According to the investigation, basic banking norms were flouted, violating standing banking protocols. Examples include backdating credit approvals with several loans being disbursed even before formal approval; issuing loans to financially weak entities; diversion of funds to promoter group entities; keeping defaults off records; and even misrepresentation of financial statements. Sources also indicate that entities linked to Yes Bank promoters received significant financial transfers, raising concerns of a quid pro quo arrangement.

A history of financial misconduct: Last year, SEBI barred Anil Ambani and 24 others, including ex-top brass of Reliance Home Finance Ltd (RHFL), from the securities market for five years. SEBI also fined Ambani ₹25 crore for orchestrating a fraudulent scheme that hurt RHFL’s stakeholders. In total, penalties against the involved entities exceeded ₹625 crore. A Reliance Group source however, denied allegations saying that all loans followed due process. Sanjay Nambiar, Yes Bank’s Group General Counsel, has resigned amid the probe.

Big picture: This case is yet another reminder of deep-rooted lapses in corporate governance and lending oversight that continue to plague India’s banking system.

On Thursday, American President Donald Trump slammed U.S. tech giants for conducting their business activities abroad, especially in China and India. The Republican leader took direct aim at these companies, insisting they "put America first" by manufacturing and hiring domestically. Trump emphasized that many tech firms “reaped the blessings of American freedom” yet built factories in China and hired in India.

Silicon Valley’s backup plan: Several U.S. firms have diversified their supply chains post-COVID, moving parts of their manufacturing to Vietnam and India in addition to China. India, with its large pool of tech talent and lower costs, has long been a go-to destination for software development. Trump’s call directly challenges the offshoring models of Silicon Valley, creating uncertainty for tech hiring outside the United States.

Trump vs. India, again: Previously, Trump criticised Tesla’s plans to build a factory in India, calling it “very unfair” to American workers and citing India’s high import tariffs. Trump also took aim at Apple for ramping up iPhone production in India, saying he told CEO Tim Cook he wouldn’t let Apple build “all over India.” Instead. he urged Apple to scale up production in the U.S. Trump even threatened a 25% tariff on non-U.S. iPhones in a bid to enforce this.

What This Means for Tech Talent: If enforced, U.S. tech firms may slow hiring in India or tighten visa and remote-work policies. While India’s IT professionals currently benefit from the global landscape, this threat could possibly reshape the flow of talent.

Trump’s aggressive tech nationalism signals a deeper shift in U.S. policy, prioritising American jobs over global collaboration. For India, this could mean fewer manufacturing opportunities and tougher entry points. That said, technology doesn’t respect borders, and global firms may still resist being boxed in.

Mobile exports boom 127x: According to the Minister of State for Electronics and IT, India's mobile phone exports surged 127 times in 10 years, reaching a value of ₹2 lakh crore in 2024-25. The narrative has now switched completely, while 75% of the total mobile phone demand in India was met through imports in 2014-15, it has now dropped to meagre 0.02% in 2024-25. India is now the world's second-largest mobile manufacturer.

Indian IT sector slowdown: India's IT sector is projected to experience flat revenue growth of 0-2% in FY26, according to a new report. The slowdown stems from weak global demand and cautious client budgets, particularly driven by uncertainties in the critical US market related to policies and tariffs.

Mine collapse mystery: In Dhanbad a mine collapse is suspected, trapping over half a dozen hired workers linked to an illegal mining syndicate. A National Disaster Response Force team was deployed, however, rescue efforts are delayed as the exact location of the incident is still unknown. Despite mounting allegations, local police and officials report that no sign of any such incident can be found. However, locals MPs and activists claim that the incident had indeed occurred and that access to the site was being blocked by illegal mining syndicates.

What's happening? Meme stock mania is officially back, echoing the wild trading seen in 2021 (Remember GameStop?).

Who’s buying? Just like in 2021 - its people like us - retail investors organized through Reddit's r/WallStreetBets and other social platforms collectively pushing up stocks that have been heavily shorted to “stick-it-to-the-big-man”.

Focus on “DORK”: This time, companies likeKrispy Kreme (DNUT), Opendoor (OPEN), Rocket Mortgage (RKT) and Kohl’s (KSS) have become the stocks of the moment seeing massive, rapid price jumps despite no change in underlying businesses. They’ve also earnt a new moniker from traders along the way — “DORK,” a reference to the first letters of their tickers. 

To the mooooon! But actually the stocks were already significantly down today.

Thailand-Cambodia clashes: A deadly border clash erupted near the Ta Moan Thom Temple between Thailand and Cambodia, resulting in at least 14 casualties. Both nations have blamed each other, drawing international calls for de-escalation as diplomatic tensions worsen.

Russia's air tragedy: An Antonov An-24 passenger plane carrying 48 passengers and crew crashed in Russia's Far East on Thursday. Everyone on board is said to have died, though rescuers struggled to reach the remote crash site. The Angara Airlines plane, built in 1976, was on its way to Tynda.

UN drops the legal hammer: Countries failing to adequately protect the climate could be found in violation of international law and may owe reparations to affected nations. This marks a significant boost for global climate action.  

Trade Wars: EU-China edition: EU-China relations hit an "inflection point" due to trade imbalances, China's Russia ties, and growing geopolitical mistrust. The EU is seeking solutions for fairer trade, while China calls for mutual trust amid sanctions and strong rhetoric.

BYD drives in to Pakistan: Chinese multinational manufacturer BYD plans to assemble electric vehicles in Pakistan starting in 2026, aiming for 25,000 units annually through a partnership with Mega Motor Company to meet the region’s rising EV demand. 

Ctrl+Alt+Ransom: According to Microsoft, the recent hack on SharePoint servers was done by a Chinese hacking group that it has since named Storm-2603. The attack has affected over 400 firms and agencies globally, including the US National Nuclear Security Administration.

Prescription doc pleads guilty: Dr. Salvador Plasencia has admitted guilt to four counts of illegally supplying ketamine to Friends actor Matthew Perry before his 2023 fatal overdose. He will surrender his medical license and could face up to 40 years in prison.

Hulk Forever: WWE Hall-of-Famer, Terry “Hulk Hogan” Bollea, passed away from cardiac arrest at his home in Clearwater, Florida, at the age of 71. A six-time world champion and pop culture icon, Hogan transformed wrestling into mainstream entertainment and earned global fame.

SC stays acquittal of accused in Mumbai train blasts: Supreme Court has stayed the Bombay High Court’s acquittal of 12 in the 2006 Mumbai train blasts case. However, the accused won't return to jail.

PAU goes global: According to EduRank 2025, Punjab Agricultural University is now among the top 100 agricultural institutions globally, ranking 93rd on the list. It is India's only state agricultural university to make the list of 4,407 institutions.  

Deshmukh makes history: Indian chess prodigy Divya Deshmukh made history by becoming the first Indian to reach the FIDE Women's World Cup chess final. She defeated Chinese grandmaster Tan Zhongyi in the semi-finals.

Pant smashes records (again): Indian wicket-keeper batsman Rishab Pant made history again as the first wicketkeeper to score over 1,000 Test runs in an away country, reaching 1,018 runs in England. He reached this milestone with an unbeaten 37 against England before sustaining an injury.  

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