Rs 170000000000 loan fraud: Anil Ambani to appear before ED today in money laundering case

India.com

4 days ago

Rs 170000000000 crore loan fraud: Anil Ambani to appear before ED today in money laundering case
Reliance Group Chairman Anil Ambani will reportedly appear before the Enforcement Directorate for questioning in a money laundering case linked to an alleged bank loan fraud worth crores of rupees against his group companies, official sources said on Friday.
The federal probe agency, will record his statement under the Prevention of Money Laundering Act (PMLA) once he deposes, has also notified a Look Out Circular (LOC) against the 66-year-old businessman to stop him from travelling abroad, the sources said.
What is the case?
The summons come after the federal agency conducted searches at 35 premises of 50 companies and 25 people, including executives of his business group, last week. The searches, launched on July 24, went on for three days.
Some executives of Ambani's group companies have been also been summoned over the next few days.
The action pertains to alleged financial irregularities and collective loan 'diversion' pegged at more than Rs 17,000 crore by multiple group companies of Anil Ambani, including Reliance Infrastructure (R Infra).
The agency found, on the basis of a Sebi report, that R Infra 'diverted' funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company named CLE. It is alleged that R Infra did not disclose CLE as its 'related party' to avoid approvals from shareholders and audit panels.
What has Reliance responded?
A Reliance Group spokesperson said in a statement that the allegation regarding alleged diversion of Rs 10,000 crore to an undisclosed party was a 10-year-old matter and the company had stated in its financial statements that its exposure was only around Rs 6,500 crore.
Reliance Infrastructure had publicly disclosed this matter on February 9, 2025, nearly six months ago, the statement said.
'Through mandatory mediation proceedings conducted by a retired Supreme Court judge and the mediation award filed before the Hon'ble Bombay High Court, Reliance Infrastructure arrived at a settlement to recover its 100 per cent exposure of Rs 6,500 crore,' it said.
The company added that Ambani was not on the board of R Infra since more than three years (March 2022).
The ED is also looking at allegations of 'illegal' loan diversion of around Rs 3,000 crore, given by Yes Bank to the group companies of Ambani between 2017-2019.
The ED, the sources said, has found that just before the loan was granted, Yes Bank promoters 'received' money in their concerns.
The agency is investigating this nexus of 'bribe' and the loan.
What is ED probing?
The sources said the ED is also probing allegations of 'gross violations' in Yes Bank loan approvals to these companies, including charges such as back-dated credit approval memorandums and investments proposed without any due diligence/credit analysis in violation of the bank's credit policy.
The loans are alleged to have been 'diverted' to many group companies and 'shell' (bogus) companies by the entities involved.
The agency is also looking at some instances of loans given to entities with weak financials, a lack of proper documentation of loans and due diligence, borrowers having common addresses and common directors in their companies, etc., the sources said.
The money laundering case stems from at least two CBI FIRs and reports shared by National Housing Bank, SEBI, National Financial Reporting Authority and Bank of Baroda with the ED, they had said.
These reports, the sources said, indicate that there was a 'well-planned and thought after scheme' to divert or siphon off public money by cheating banks, shareholders, investors and other public institutions.