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ED actions concluded at all locations, say Reliance Infra, Reliance Power

Reliance Infrastructure (R-Infra) and its sister firm Reliance Power (R-Power) have stated that actions taken by the Enforcement Directorate (ED) have concluded at all locations, and both companies have fully cooperated and will continue to cooperate with the authority. Earlier, on Thursday, the ED had raided more than 35 premises and searched over 50 companies in New Delhi and Mumbai linked to the Reliance Anil Ambani Group (RAAGA). The investigation was related to the alleged illegal diversion of loans worth Rs 3,000 crore from Yes Bank between 2017 and 2019. 'Action by ED has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company,' both R-Infra and R-Power clarified again on Sunday (27 July). The companies further clarified that 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. R-COM has been undergoing the Corporate Insolvency Resolution Process (CIRP) as per the Insolvency and Bankruptcy Code (IBC) 2016 for over six years. Earlier this month, R-Com disclosed to the exchanges that the State Bank of India (SBI) had decided to classify the company's loan account as 'fraud' due to irregularities in the conduct of the account, and that the bank would report both the account and Anil Ambani, a director at R-Com, to the Reserve Bank of India (RBI). On the other hand, R-HFL has been fully resolved pursuant to the judgement of the 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,' R-Infra and R-Power noted. Further, both companies claimed that Anil Ambani is not on the board of R-Infra and R-Power. Accordingly, any action taken against R-COM or R-HFL has no bearing or impact on the governance, management, or operations of R-Infra and R-Power, the companies added. 'The company continues to operate in the normal course, and the said action has no impact on its business operations. The company continues to focus on its business plans and remains committed to creating value for all stakeholders,' R-Infra and R-Power added.