Latest news with #PreventionofMoneyLaunderingAct
Hindustan Times
13 minutes ago
- Business
- Hindustan Times
Why ED raided Anil Ambani's Reliance Group-linked 50 companies
The Enforcement Directorate (ED) on Thursday carried out extensive raids at 35 locations across India as part of a probe into alleged loan fraud involving companies of Anil Ambani-led Reliance Anil Dhirubhai Ambani Group (ADAG). Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group(File Photo/Reuters) As previously reported by Hindustan Times, citing officials familiar with the matter, the searches were conducted at premises linked to over 50 companies and 25 individuals. The raids are part of a money laundering investigation initiated under the Prevention of Money Laundering Act (PMLA), based on two FIRs originally filed by the Central Bureau of Investigation (CBI) in September 2022. Yes Bank loans to Reliance firms under scrutiny The CBI cases pertain to loans extended by Yes Bank to Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). Both FIRs name former Yes Bank chairman Rana Kapoor. An officer from the probe agency said, 'Preliminary investigations have revealed a well-planned and thought-after scheme to divert or siphon off public money by cheating banks, shareholders, investors, and other public institutions.' He further added, 'The offence of bribing bank officials, including founder of Yes Bank [Rana Kapoor] is also under scanner." A second official involved in the investigation said ED suspects illegal diversion of around ₹3,000 crore in loans issued by Yes Bank between 2017 and 2019. 'We have also found that just before the loan was granted, the Yes Bank promoters [Kapoor] received money in their concerns. The ED is investigating this nexus of bribe and the loan,' the officer added. Another ED official highlighted 'gross violations' in loan approvals, pointing to systemic lapses in Yes Bank's internal processes. 'Credit approval memorandums (CAMs) were back-dated, investments were proposed without any due diligence or credit analysis in violation of the bank's credit policy,' the officer said. Loans routed through shell firms and group companies Investigators have uncovered evidence of loan diversions to multiple group companies and shell firms, flouting the terms of lending. The agency also identified several red flags, including: Loans to financially weak entities Absence of proper documentation Borrowers with common addresses and directors Loans disbursed on or before the application date Evergreening of loans Misrepresentation of financial data 'These findings clearly indicate a pattern of financial mismanagement and manipulation,' an officer said. The ED is also probing a sharp increase in corporate loans disbursed by RHFL, which jumped from ₹3,742.60 crore in FY 2017–18 to ₹8,670.80 crore in FY 2018–19. Apart from the CBI, several regulatory and financial institutions including the Securities and Exchange Board of India (SEBI), National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda have also provided inputs to the ED as part of the investigation. According to a Reuters report, shares of Reliance Infrastructure and Reliance Power dropped by up to 5% on Thursday following reports of ED probe. Reliance Group's statement In response, Reliance Infrastructure and Reliance Power issued a statement: '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. They further added, 'RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years. RHFL has been fully resolved pursuant to the judgment of the Hon'ble Supreme Court of India. Similar allegations as those set out in the media reports are sub-judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information.' (With inputs from Neeraj Chauhan in New Delhi)
Mint
13 minutes ago
- Business
- Mint
Anil Ambani-owned Reliance Power, Reliance Infra deny financial impact of ED action — Here's what the companies said
Anil Ambani-owned Reliance Power and Reliance Infrastructure on Thursday said that recent Enforcement Directorate (ED) raids on properties linked to Ambani will have no bearing on their business operations, financial performance. 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.
Time of India
an hour ago
- Business
- Time of India
ED secures custody of two Ramprastha Group directors in ₹1,100 crore fraud case
GURUGRAM: The Directorate of Enforcement (ED) on Wednesday secured two-day custody of Sandeep Yadav and Arvind Walia , promoters of Haryana-based realty company Ramprastha Group , in connection with a money laundering probe linked to an alleged Rs 1,100 crore fraud with homebuyers. The two were arrested on Monday after the Gurugram zonal office of the federal probe agency raided three premises in Delhi and Gurugram, including those of the directors, early morning on that day. Yadav and Walia are directors and majority shareholders in Ramprastha Promoters and Developers Pvt Ltd ( RPDPL ). They were taken into custody under the Prevention of Money Laundering Act (PMLA). The federal probe agency produced the two in the court of an additional session judge, following which the ED secured their custody. The agency conducted a survey against the group in September 2024. It is alleged that the RPDPL collected about Rs 1,100 crore from more than 2,000 homebuyers for various housing schemes like Project Edge, Project Skyz, Project Rise and Ramprastha City (plotted colony project) in various sectors of Gurugram during 2008-11. The possession of the flats or plots is yet to be given, even after 15-20 years, the sources said. Earlier this month, the agency attached colonies and plots spread across more than 1,900 acres and worth over Rs 681.54 crore of the group in Gurugram as part of this investigation. The money laundering case stems from multiple FIRs filed by the Economic Offences Wing (EOW) of the Delhi and Haryana Police based on complaints of numerous homebuyers against RPDPL and its promoters, like Yadav, Walia and Balwant Chaudhary for their "failure" to deliver promised flats and plots within the promised timeframes, the ED had said in a statement. The company and its promoters "diverted" the funds sources from buyers of these projects to its group companies as advances for the purchase of land parcels, instead of using them for completion of promised homes, it had said.
India Today
an hour ago
- Business
- India Today
ED raids hit Anil Ambani stocks: Reliance Power, Infra sink 5%
Shares of Reliance Power and Reliance Infrastructure fell sharply on Thursday, July 24, following news of Enforcement Directorate (ED) raids linked to a Rs 3,000 crore loan fraud involving companies of the Anil Dhirubhai Ambani Group (ADAG) and Yes stocks dropped over 5% in intraday trade. While Reliance Infrastructure has lost 9.37% in the past five trading sessions, Reliance Power has fallen by 7.41% during the same period. The sudden sell-off came after the ED launched a widespread search operation targeting multiple ADAG-linked to sources, ED officials carried out searches at more than 35 locations in Mumbai and Delhi. These included around 50 companies and over 25 individuals, all under the scanner for alleged money laundering. The case is being investigated under the Prevention of Money Laundering Act (PMLA) and is based on two FIRs filed earlier by the Central Bureau of Investigation (CBI).Officials familiar with the probe said the agency is looking into the diversion of loans worth nearly Rs 3,000 crore that were sanctioned by Yes Bank between 2017 and 2019. ED suspects a possible bribe-for-loan arrangement, as funds were reportedly transferred to entities linked to the Yes Bank promoters just before the loans were issued to ADAG investigation has pointed to several violations in the loan approval process. These include backdated credit approval memos, loans issued without proper due diligence, and investments cleared without following Yes Bank's credit policy. In some cases, loans were disbursed on the same day as the application or even before official sanction. Loans were also allegedly routed through shell companies, many of which had shared addresses and ED's findings are not limited to loan diversion. Inputs from various institutions, including SEBI, National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda, have also helped strengthen the case. SEBI had earlier flagged a sharp rise in corporate loans given out by Reliance Home Finance Ltd (RHFL), another ADAG company. RHFL's loan book jumped from Rs 3,742.60 crore in FY 2017–18 to Rs 8,670.80 crore in FY 2018–19, raising questions about irregularities and process ED raids come close on the heels of another major development involving Anil Ambani. The State Bank of India (SBI) recently declared Reliance Communications (RCom) and its promoter Anil D. Ambani as 'fraud'. This decision was taken on June 13, 2025, in line with the Reserve Bank of India's guidelines on fraud risk and SBI's internal of State for Finance Pankaj Chaudhary informed Parliament on Monday as per reports that the bank notified the RBI of this classification on June 24 and is now preparing to file a complaint with the CBI. On July 1, RCom's Resolution Professional informed the Bombay Stock Exchange about the bank's decision, fulfilling the company's regulatory total exposure to RCom includes a fund-based loan of Rs 2,227.64 crore, along with interest and other charges since August 2016. Additionally, the bank has a non-fund-based bank guarantee exposure of Rs 786.52 crore. RCom is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. A final ruling from the National Company Law Tribunal (NCLT), Mumbai, is still has also begun personal insolvency proceedings against Anil Ambani under the same law. The matter is being heard by the POWER, INFRASTRUCTURE STATEMENT"It is clarified that Reliance Power and Reliance Infrastructure are a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years," said a statement. advertisement"RHFL has been fully resolved pursuant to the judgment of the Hon'ble Supreme Court of India. Similar allegations as those set out in the media reports are sub-judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information," it further added. "Further, Mr. Anil D. Ambani is not on the Board of Reliance Power and Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power and Reliance Infrastructure," said the firms Reliance Power and Reliance Infrastructure. - EndsMust Watch
Hindustan Times
an hour ago
- Business
- Hindustan Times
India to expand cooperation for extraditing economic offenders: PM Modi
Prime Minister Narendra Modi on Thursday said Indian security agencies will continue to strengthen cooperation with foreign counterparts on issues related to the extradition of economic offenders. Britain's Prime Minister Keir Starmer and Prime Minister Narendra Modi of India speak during a press conference after signing a free trade agreement at Chequers near Aylesbury, England, Thursday, July 24, 2025. (AP) 'Our security agencies will continue to enhance cooperation and coordination on matters such as the extradition of economic offenders,' he said. The statement, made during his visit to the United Kingdom, comes at a time when Indian authorities are pressing for the return of several high-profile individuals facing charges ranging from financial fraud to money laundering. These include Nirav Modi, accused in the ₹6,498 crore Punjab National Bank (PNB) scam, whose tenth bail plea was recently rejected by a London court; Vijay Mallya, wanted in connection with a ₹9,000 crore loan default case; and Sanjay Bhandari, facing charges under the Official Secrets Act and the Prevention of Money Laundering Act. India has also sought the extradition of Hajra Memon, widow of underworld figure Iqbal Mirchi, along with her sons Asif and Junaid Memon, in connection with money laundering and organised crime cases. Mallya fled India in 2016 and has been residing in the UK since then. In December last year, finance minister Nirmala Sitharaman informed Lok Sabha that the Enforcement Directorate (ED) had so far restituted ₹14,000 crore worth of assets to various banks through the sale of Mallya's properties. In the case of Nirav Modi, investigations have revealed that he secured his first fraudulent letter of undertaking (LoU) from PNB on March 10, 2011, and went on to obtain 1,212 such guarantees over the next 74 months. The LoUs were used to funnel money to a web of dummy companies registered in offshore tax havens, including the British Virgin Islands. Nirav Modi and his relatives fled India in early 2018, just days before the scam became public. He remains in a UK prison as Indian authorities continue to push for his extradition.
