Latest news with #AnilAmbani
Hans India
6 hours ago
- Business
- Hans India
Anil Ambani Group on ED radar
Mumbai: The Enforcement Directorate on Thursday conducted multiple raids as part of an alleged Rs3,000 crore worth bank loan fraud linked money laundering case against the companies of Reliance Group chairman Anil Ambani, official sources said. More than 35 premises in Mumbai belonging to 50 companies and 25 persons are being searched under the Prevention of Money Laundering Act (PMLA), they said. The investigation is being carried out by a Delhi-based investigation unit of the sources said they are probing allegations of illegal loan diversion of around Rs3,000 crore, given by the Yes Bank to the group companies of Ambani between 2017 and 2019. Two group companies, Reliance Power and Reliance Infrastructure, said in separate but identical regulatory filings that the ED action has had 'absolutely no impact' on their business operations, financial performance, shareholders, employees, or any other stakeholders. '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,' the companies said. The ED, the sources said, has found that just before the loan was granted, Yes Bank promoters 'received' money in their federal probe agency is investigating this nexus of 'bribe' and the loan. Sources said the ED is also probing allegations of 'gross violations' in Yes Bank loan approvals to Anil Ambani Group companies, including charges like back-dated credit approval memorandums (CAMs), investments proposed without any due diligence/credit analysis in violation of banks credit policy, the sources said. The loans are alleged to have been 'diverted' to many group companies and shell companies by the entities involved.
Time of India
7 hours ago
- Business
- Time of India
ED jolts Anil Ambani grp's fragile recovery
MUMBAI: Few comebacks have been as phoenix-like or as fragile as that of Anil Ambani 's beleaguered business empire. Once weighed down by crushing debt and a string of defaults, two of the group's core firms, Reliance Power and Reliance Infrastructure, were clawing their way back into investor favour. Both stocks had rallied sharply over the past year, buoyed by signs of operational turnaround and broader optimism in govt's infrastructure push. But that momentum was jolted on Thursday, when the ED raided group-linked entities, reviving memories of past financial misdemeanours. The timing could not have been worse for the Reliance Anil Dhirubhai Ambani Group (RAAG). In July 2025, both Reliance Power and Reliance Infra secured board approval to raise Rs 6,000 crore each via qualified institutional placements and non-convertible debentures, aiming for a total capital infusion of Rs 18,000 crore. This came after aggressive debt trimming. Reliance Infra had achieved zero standalone net debt, while Reliance Power had repaid large chunks of bank loans. The turnaround had already begun to reflect in financials. Reliance Power swung to a Rs 2,948 crore profit in FY25 from a Rs 2,068 crore loss the year before. Reliance Infra posted a Rs 4938 crore in FY25 reversing earlier losses. Both firms have since issued statements distancing themselves from Anil Ambani, stressing that the ED's investigations relate to Reliance Communications (RCOM) and Reliance Home Finance (RHFL)-entities no longer associated with the group. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Many Are Watching Tariffs - Few Are Watching What Nvidia Just Launched Seeking Alpha Read More Undo Ambani holds no board position in either of the current entities, they said. At the heart of the current scrutiny are legacy defaults. RCOM, once a telecom major, defaulted in 2017 after its debt surged to Rs 43,000 crore. It entered insolvency proceedings in 2019. Asset erosion and procedural delays led to expected recoveries of just 35%. Reliance Naval soon followed, with lenders forced to take an 83% haircut. RHFL and Reliance Capital were downgraded to default in 2019. That year, the group had become the largest corporate defaulter linked to the Yes Bank crisis, with the failed bank's exposures nearing Rs 12,000 crore. The ED is probing quid pro quo allegations between RHFL and Yes Bank, suggesting that entities tied to the bank's promoters received RHFL funds ahead of loan sanctions. The promoters claim they followed due process and were repaid. A Supreme Court ruling in 2023 cleared its acquisition by Authum Finance, completing its resolution. RCOM and RHFL no longer belong to RAAG. Yes Bank's largest recovery came from seizing the group's former headquarters, Reliance Center in Santacruz, which is now Yes Bank's own office, valued at Rs 1,200 crore and adjusted against Reliance Infra's Rs 2,892 crore dues. Reliance Capital's own resolution proceeded under court supervision, with Rs 38,526 crore in claims. The NCLT approved a plan led by Hinduja-backed IndusInd International Holdings in 2024, offering lenders Rs 9,661 crore and Rs 500 crore in cash, implying a 63% haircut. That the remnants of the RAAG group-Reliance Infra and Reliance Power-are mounting a revival, while much of its past remains mired in litigation and write-downs, has not gone unnoticed. The latest enforcement action may test how far the market is willing to separate the new from the old. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
9 hours ago
- Business
- Time of India
No impact on Rel Infra & Rel Power, say cos
NEW DELHI: Reliance Infra and Reliance Power distanced themselves from ED action against Reliance Communications saying the entities had no business or financial linkages with the company facing money laundering probe. In identical statements, they also said Anil Ambani was not on their boards and actions by ED have "no bearing or impact on the governance, management, or operations" of the listed entities. "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... RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency & Bankruptcy Code, 2016 since over six years," R-Infra and R-Power said in stock exchange filings.
Time of India
9 hours ago
- Business
- Time of India
ED searches 35 premises linked to Anil Ambani
NEW DELHI: Early on Thursday, the ED swooped in on more than 35 premises identified with industrialist Anil Ambani and at least 50 entities associated with his Reliance Anil Dhirubhai Ambani Group (ADAG) across Mumbai in a larger money laundering investigation targeted at him based on multiple FIRs registered by CBI and other agencies over the last few years. The searches have huge financial implications for public money, Rs 20-30,000 crore, which the agency believes has been siphoned off. Ambani investigation throws up mysterious entity: 'C Company' The searches at premises identified with industrialist Anil Ambani have huge financial implications for public money, Rs 20-30,000 crore, which the agency believes has been siphoned off, including outside the country, through "undisclosed foreign bank accounts and foreign assets" created over the years. A large chunk of the money came to Reliance ADAG from SBI and other public sector banks, besides Yes Bank, then a private entity, and mutual funds. Preliminary investigation has thrown up a mysterious entity: 'C Company'. The entity, whose existence was not known so far, is allegedly found to have been involved in related party transactions in this whole scam, sources said. Sources said ED was probing an alleged loan fraud ofRs 14,000 crore involving Reliance Communications Ltd and other associated entities. In response to a question in Lok Sabha on Monday, minister of state for finance Pankaj Chaudhary said SBI has "classified Reliance Communications Ltd along with promoter director Anil Ambani as 'fraud' on June 13". This has also been communicated to Bombay Stock Exchange. "Based on information received from Sebi, ED has found Reliance Infra has diverted large sums of money disguised as ICDs to group companies of ADAG (Anil Ambani group) through 'C Company', an undisclosed related company," a source told TOI. Reliance Infra did not disclose 'C Company' as its related party in order to avoid having to take proper approval from shareholder and audit committees, the source added. It was also hidden presumably to circumvent checks and balances imposed on related party transactions as per laws. Besides, there is an investigation in the alleged diversion of loans of over Rs 10,000 crore by Reliance Infra. ED's probe is looking at why Reliance Infra took a haircut of Rs 5,480 crore, receiving only Rs 4 crore in cash, while agreeing to settle the remaining Rs 6,499 crore through transfer to certain discoms, which have neither been operational nor done business for many years. The agency is already probing Ambani and his entities in a case of Rs 3,000 crore received from Yes Bank where he is alleged to have bribed the former CEO of the bank, Rana Kapoor, through his wife's company for Rs 225 crore. In another case of alleged misappropriation of bank funds, the agency is probing Reliance Communications for a loan default ofRs 1,050 crore to Canara Bank. Sources said more than 25 individuals, including Ambani and his close associates, are targets of the search operations which started on Thursday morning in a probe initiated under the Prevention of Money Laundering Act. ED is being assisted by multiple agencies, including National Housing Bank, Sebi, National Financial Reporting Authority and Bank of Baroda among others. The alleged loan diversion of around Rs 3,000 crore from Yes Bank pertains to the period between 2017 and 2019. ED is investigating alleged quid pro quo in sanction of loan as a Reliance Anil Ambani entity had transferredRs 225 crore into the accounts of RAB Enterprises, in which Rana Kapoor's wife Bindu Kapoor had 100% stake. These are all part of an FIR registered by CBI and now being investigated by ED. The FIR also alleged that credit approval memorandums were back dated, and the proposed investments lacked due diligence, not meeting the bank's credit policy. Sources said preliminary investigation found that these loans were diverted to many group entities and shell companies, in many cases there was no proper documentation to loans issued. In several cases, borrowers were found to have common addresses and directors.
Time of India
14 hours ago
- Business
- Time of India
Yes Bank general counsel Sanjay Nambiar resigns
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Mumbai: Sanjay Nambiar , the group general counsel of Yes Bank , has resigned and is currently serving his gardening leave. Yes Bank , under its erstwhile management, has been part of a long-drawn investigation by the Enforcement Directorate (ED) into a loan fraud case involving firms linked to Anil Ambani "It is true that Sanjay Nambiar has resigned," an official spokesperson for the lender confirmed Thursday in an emailed response to ET's specific who was general counsel at Yes Bank for nearly 15 years, had previously worked at ICICI Bank for over four years, as per his LinkedIn to the ED, preliminary investigations showed that loans worth around ₹3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell firms and other group key aspect of the ED probe involves loans sanctioned by Yes Bank, Canara Bank and Bank of Baroda to various ADAG group entities, and a related ₹2,850-crore investment made by Reliance Mutual Fund in Yes Bank's AT-1 ED suspects these transactions may have involved quid pro quo AT-1 bonds considered quasi-equity in nature, were written off by the RBI after Mint Road had ordered the board of the private lender be superseded in March 2020. A consortium of lenders then bailed out Yes Bank from the brink of collapse.
