Reliance Infrastructure, Reliance Power shares fall up to 5%. Here's why
ADVERTISEMENT Reliance Infrastructure declined 4% to a day's low of Rs 282, while Reliance Power dropped 5% to Rs 45.25 on the BSE. This comes a day after both stocks surged 5% on Wednesday.
Over the past two weeks, Reliance Infrastructure shares have fallen 20%, while Reliance Power has declined 23%.
The Enforcement Directorate (ED) questioned Reliance Group chairman Anil Ambani on Tuesday in connection with its money laundering probe into an alleged Rs 17,000 crore bank loan fraud case.Ambani has sought seven days to furnish documents pertaining to the queries posed to him by the ED, according to a report by ET Bureau.The ED will question another close aide, Sateesh Seth of Reliance Group on Thursday and on Wednesday, it questioned Amitabh Jhunjhunwala, a former close aide of Ambani.
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Loans to group firms—Reliance Home Finance Ltd, Reliance Commercial Finance Ltd, and Reliance Communications—amounting to around Rs 17,000 crore have reportedly turned into non-performing assets (NPAs), involving nearly 20 lenders.
Nearly 20 private and public sector banks had given loans to Anil Ambani's entities over a period of time, which eventually turned into non-performing assets. Three entities of Reliance Group - Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Ltd. (RCFL) and Reliance Communications (RCom) - were given a total of about ₹17,000 crore by the banks.
ADVERTISEMENT According to data available with the ED, RHFL has an outstanding loan of more than ₹5,901 crore, while the amount in the case of RCFL is about ₹8,226 crore and RCom owes nearly Rs 4,105 crore.
Besides YES Bank, the other banks that had given loans to Reliance Group include State Bank of India, UCO Bank, Axis Bank, ICICI Bank, HDFC Bank, Bank of India and Punjab and Sind Bank, the ETBureau report said.
ADVERTISEMENT According to SEBI, evidence collected during the investigation indicates that CLE was functionally a related party of R Infra. Documentation cited by the regulator included submissions by CLE to Yes Bank, where it acknowledged Reliance Infra as a promoter. Internal records, such as audit committee meeting minutes, reportedly identified CLE as a 'group company.'On Wednesday, Reliance Infrastructure replied to clarification sought by NSE on increase in volume. The company said that the company is compliant with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and has been promptly informing the Stock Exchanges of all events and information impacting Company's operations or performance.
Secondly, the company cannot comment on the volume of its securities on the exchanges. The company will continue to make appropriate disclosures, in accordance with applicable regulations, as and when any disclosable event occurs.
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