New Delhi [India], August 1 (HBTV): The Enforcement Directorate (ED) has summoned industrialist Anil Ambani for questioning in connection with an ongoing investigation into an alleged INR 17,000-crore loan fraud case, official sources said on Friday.
Ambani has been directed to appear before investigators at the ED headquarters in New Delhi on August 5 in relation to suspected financial irregularities and potential violations under the Prevention of Money Laundering Act (PMLA).
The agency is examining the roles of various entities and individuals linked to the case, with Ambani's statement expected to be a crucial part of the investigation.
The summons follows a large-scale search operation conducted by the ED on July 24 at 35 premises linked to over 50 companies and 25 individuals associated with Reliance Anil Ambani Group (RAAGA) companies. The raids were carried out as part of a money laundering case initiated after the Central Bureau of Investigation (CBI) registered a First Information Report.
According to officials, the ED's investigation is based on information provided by several institutions, including the National Housing Bank, SEBI, the National Financial Reporting Authority (NFRA), and Bank of Baroda.
'Preliminary investigation by ED has revealed a well-planned and deliberate scheme to divert and siphon off public money by defrauding banks, shareholders, investors, and public institutions. The role of bribery involving bank officials, including the promoter of Yes Bank, is also under scrutiny,' said an official.
Preliminary findings point to the illegal diversion of approximately INR 3,000 crore from Yes Bank during the period from 2017 to 2019. ED stated that the promoters of Yes Bank allegedly received money through their concerns just before these loans were sanctioned.
ED officials said the agency is probing this alleged nexus of bribery and fraudulent loan disbursements. The investigation has revealed serious violations in Yes Bank’s loan approvals to RAAGA companies, including back-dated Credit Approval Memorandums (CAMs), proposals made without proper due diligence, and clear violations of the bank’s credit policy.
In breach of loan terms, officials stated, the disbursed funds were diverted to group and shell companies. 'Red flags identified by ED include loans to financially weak entities, lack of documentation, no due diligence, common addresses and directors among borrowers, diversion of funds to promoter-linked firms, and loans disbursed on the same day as applications or even before sanctioning,' said an official.
Officials further said that SEBI has shared findings in the case of Reliance Home Finance Ltd (RHFL), where a dramatic increase in corporate loans—from INR 3,742.60 crore in FY 2017–18 to INR 8,670.80 crore in FY 2018–19—is also under ED scrutiny. The agency is probing instances of expedited approvals, irregular processes, and multiple other violations.
Reliance Communications Ltd is also accused of a loan fraud of over INR 14,000 crore. 'State Bank of India (SBI) has classified Reliance Communications and its promoter Anil Ambani as “fraudulent” in line with RBI guidelines. SBI has reported this classification to the Reserve Bank of India and is preparing to file a formal complaint with the CBI,' an official said.
Additionally, Reliance Communications has allegedly defrauded Canara Bank of over INR 1,050 crore.
The ED is also investigating the existence of undisclosed foreign bank accounts and assets. 'These investigations are ongoing and may reveal further violations,' said officials.
Further findings reveal that Reliance Mutual Fund invested INR 2,850 crore in AT-1 bonds (perpetual fixed deposits) of Yes Bank, allegedly as part of a quid pro quo arrangement. These bonds were later written down, resulting in the alleged siphoning of public funds belonging to mutual fund investors. The CBI is separately investigating this issue.
Based on inputs from SEBI, ED has found that Reliance Infrastructure diverted a substantial amount of money disguised as inter-corporate deposits (ICDs) to group companies via a related but undisclosed entity referred to as 'C Company'. The concealment of this relationship was allegedly intended to bypass shareholder and audit committee approval requirements.
Officials added that Reliance Infrastructure took a haircut of INR 5,480 crore, receiving only INR 4 crore in cash. 'The remaining INR 6,499 crore was settled via asset transfers and economic rights related to certain discoms that have been inactive for years. There is no possibility of recovering these amounts. The estimated loan diversion in this instance alone is over INR 10,000 crore,' said the official.
(ANI)