Anil Ambani-owned Reliance Power, Reliance Infra deny financial impact of ED action — Here's what the companies said
In separate regulatory filings, both companies clarified that the developments reported in the media do not impact day-to-day functioning or future outlook. The Enforcement Directorate reportedly raided several premises in Mumbai linked to Anil Ambani on Thursday, 24 July, under the Prevention of Money Laundering Act (PMLA).
"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," Reliance Infrastructure said in its filing.
Both Reliance Infrastructure and Reliance Power stated that they have no business or financial linkage with RCOM or RHFL. The group further stated that RCOM has been undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, for over six years.
Regarding RHFL, the company informed that the matter has been fully resolved pursuant to a judgment by the Hon'ble Supreme Court of India. Similar allegations, as reported in the media, are sub-judice and currently pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information, the group stated.
"Mr. Anil D. Ambani is not on the Board of Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Infrastructure," the group said.
Shares of both Reliance Power and Reliance Infrastructure came under pressure in Thursday's session, each falling 5% after media reports surfaced about Enforcement Directorate (ED) raids linked to an alleged ₹ 3,000-crore bank loan fraud involving Anil Dhirubhai Ambani Group companies and Yes Bank.
According to PTI, the ED conducted simultaneous searches at more than 35 premises across Mumbai and Delhi, covering around 50 companies and 25 individuals. The raids are part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA).
Citing sources, PTI reported that the agency is probing allegations of illegal loan diversion between 2017 and 2019. ED officials suspect that Yes Bank promoters received funds in their related concerns just before loan disbursement to ADAG companies, indicating a possible quid pro quo or 'bribe-for-loan' nexus.
Further, the ED is looking into alleged procedural violations such as backdated credit approval memorandums, investments made without due diligence, and deviations from Yes Bank's internal credit policy.
The money laundering case is based on two CBI FIRs and inputs from multiple agencies, including SEBI, the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda, the report added.
Citing sources, PTI reported that the agency is probing allegations of illegal loan diversion between 2017 and 2019. ED officials suspect that Yes Bank promoters received funds in their related concerns just before loan disbursement to ADAG companies, indicating a possible quid pro quo or 'bribe-for-loan' nexus.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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