ED raids Anil Ambani over Rs 3K cr fraud

The Enforcement Directorate on Thursday carried out a large search operation across over 35 locations in connection with a money laundering investigation into Reliance Anil Ambani Group Companies (RAAGA Companies).

The search operation was conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), spanning over 50 companies and more than 25 individuals connected to the case.

The Reliance Power and Reliance Infrastructure, in separate statements, clarified that they were separate and independent listed entities with no business or financial linkage to RCOM or RHFL.

“The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old..... Further, M. Anil D. Ambani is not on the Board of Reliance Power or Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Rel Power and Rel Infra,” the statement read.

According to a senior probe agency official, the money laundering probe stems from FIRs earlier registered by the Central Bureau of Investigation (CBI) and also information shared by other institutions such as the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA) and Bank of Baroda.

According to ED, the investigation has uncovered a well-planned scheme involving illegal diversion of public money through fraudulent means, allegedly involving cheating of banks, shareholders, investors, and other financial institutions.

The agency is also probing allegations of bribery involving officials of Yes Bank, including its promoter.

Preliminary findings suggest that loans amounting to approximately Rs 3,000 crore were illegally diverted from Yes Bank between 2017 and 2019.

The ED has found that just before these loans were sanctioned, entities linked to Yes Bank promoters received significant financial transfers, raising concerns of a quid pro quo arrangement.

“Gross violations have been identified in the loan approval process. Credit Approval Memorandums (CAMs) were allegedly backdated, and investments were proposed without any due diligence, in clear violation of the bank’s credit policy,” the officer said.

Strong allegations against Reliance

• RCom also allegedly committed loan fraud of over Rs 14,000 crore; SBI has classified it as “fraudulent” and is set to file a CBI complaint
• Canara Bank was also cheated of Rs 1,050 crore
• Rs 10,000 crore allegedly diverted by Reliance Infra via an undisclosed related party, “C Company”, with minimal recovery and defunct DISCOMs used for settlement

Company rubbishes accusations

• Company sources said the reports concerned transactions dating back over eight years and misrepresented facts
•  Sources clarified that RCOM and RHFL were no longer part of the Reliance Group
•  Sources accused SBI of violating natural justice by denying Anil Ambani a personal hearing and withholding key documents