(Image source from: PTI)
Anil Ambani's Reliance ED Issue: The Enforcement Directorate (ED) has called in Reliance Group chairman Anil Ambani for a second round of questioning on November 14 regarding a money laundering investigation, as reported by sources to PTI. Anil Ambani is scheduled to appear on November 14 to answer questions about a money laundering case tied to an alleged fraud involving bank loans from the State Bank of India (SBI), according to the sources. On November 3, the ED took control of over 132 acres of land located in the Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai, valued at Rs 4,462.81 crore, as indicated by knowledgeable sources to ET. The ED's actions concerning Ambani's assets indicate a major step in the bank fraud inquiry involving Anil Ambani’s Reliance Group. As per the sources, the overall worth of assets seized related to the Reliance Group's supposed loan fraud has exceeded Rs 7,500 crore. Earlier, the investigative agency had confiscated 42 properties valued at more than Rs 3,083 crore concerning cases related to RCom, Reliance Commercial Finance Ltd, and Reliance Home Finance Ltd.
This comes amidst an ongoing investigation by the CBI and ED into the alleged misdirection and misuse of bank loans by Reliance Communications Ltd (RCom) and other companies under Anil Dhirubhai Ambani Group (ADAG). The inquiry originates from a CBI FIR filed based on Sections 120-B, 406, and 420 of the Indian Penal Code, as well as Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act against RCom, Anil Ambani, and others. The ED's probe into Anil Ambani's Reliance Group has uncovered that various ADAG companies, including RInfra, RCom, Reliance Home Finance Ltd (RHFL), RCFL, and Reliance Power Ltd, have misused public funds. Between 2010 and 2012, RCom and its subsidiaries are said to have acquired thousands of crores from Indian banks, of which Rs 19,694 crore is still unpaid, stated the ED. Five banks have already identified RCom's loan accounts as fraudulent due to issues such as circular fund movements, continual refinancing of debts, and improper use of bill discounting, according to the investigation agency.
Findings from the investigation suggest that the Reliance Group allegedly used over Rs 13,600 crore for refinancing loans, with Rs 12,600 crore being funneled to associated parties, and Rs 1,800 crore diverted into fixed deposits or mutual funds that were subsequently sold and redirected. This means loans taken by one part of the group were often utilized to pay back debts of another, sent to related parties, or invested in mutual funds against the loan agreements. The Ministry of Corporate Affairs (MCA) has instructed its investigative department, the Serious Fraud Investigation Office (SFIO), to look into various entities tied to ADAG due to suspected issues in corporate governance and potential fund misdirection, according to informed individuals. An order from the MCA earlier this week requested the SFIO to investigate at least four entities: Reliance Infrastructure (RInfra), Reliance Communications (RCom), Reliance Commercial Finance Ltd (RCFL), and CLE Pvt Ltd.
The government department released a notice regarding Ambani after receiving several reports from banks and auditors that pointed out potential issues in the financial reports of ADAG. Some of these problems had previously emerged during investigations by banks that occurred after Reliance Capital and RCom defaulted on their debts. "Given that these organizations have already been examined by the CBI and the ED, the SFIO investigation will concentrate on issues related to corporate governance, particularly whether there was any intentional neglect by the banks, auditors, or rating firms," a government official familiar with the situation informed ET. "If there are any cases of misappropriation, and if they have been funneled through dummy companies."
