Latest news with #RHFL
Time of India
2 days ago
- Business
- Time of India
ED probes Anil's RHFL for writing off Rs 7k cr loans to group firms
NEW DELHI: As the ED sifts through voluminous documents and digital records seized from Anil Ambani 's Reliance group entities during searches, which began on July 24 and concluded on Sunday, the agency, in particular, is looking at alleged diversion of Rs 12,000 crore loans by Reliance Home Finance Ltd (RHFL) to various related entities. ED is being assisted in its task by National Financial Reporting Authority, CBI, Security and Exchange Board of India (Sebi) and National Housing Bank, since it involves misappropriation of huge public funds. At least a dozen related entities of the group are currently undergoing insolvency proceedings, which means massive haircuts for banks. Sources said 22 individuals, who are key management personnel and associates of Ambani, have come under the radar of the agency and are being investigated, besides the 60 companies that were covered during the searches lasting over 72 hours. A Sebi investigation report (shared with ED) has highlighted alleged laundering of funds by RHFL, which had written off around Rs 7,000 crore out of the Rs 12,000 crore of loans it had extended to various entities linked to the Anil Ambani group. Ambani is already under investigation for his group entity RHFL availing funds of Rs 2,965 crore from Yes Bank by allegedly paying bribes to its former CEO Rana Kapoor through his wife Bindu Kapoor and her companies. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Do You Speak English? You May Be Able To Work a USA Job From Home in Bangladesh US Jobs | Search ads Undo Rs 1,353 crore of the Rs 2,965 crore received from Yes Bank has turned into NPA. A forensic audit, commissioned by the bank, has also concluded diversion of this amount to related companies. Reliance Power and Reliance Infrastructure, in identical statements, said, "The company and all its officials have fully cooperated and will continue to cooperate with the authority". On the alleged diversion of Rs 12,000 crore by RHFL to related entities, a company official said, "The account of RHFL has been fully resolved with change in management pursuant to the judgment of SC in 2023. ..Allegations of other irregularities are sub-judice and as a matter of fact, the Sebi order has been challenged before SAT (Securities Appellate Tribunal) since 2024". "Sebi vide its order dated Aug 22, 2024, has found that RHFL has engaged in a fraudulent scheme to divert funds for the benefit of Ambani and his group companies," a source aware of the probe said. ED is probing related party transactions, in which it was found that Reliance Infrastructure had received funds from Crest Logistics and Engineers Pvt Ltd, which in turn had received funds from at least four entities - RPL Star Power Pvt Ltd, RPL Solar Power Pvt Ltd, Species Trade and Commerce Pvt Ltd and Worldcom Solutions Ltd - all of them allegedly linked to the Anil Ambani group. According to the Sebi investigation report, the forensic audit of RHFL found that "loans of more than Rs 12,000 crore have been extended to various entities which are linked to the Anil Ambani group. These companies had a common registered address, email ID/domain, address and directors". The Sebi report further revealed that as on Sept 30, 2021, Rs 6,931 crore had been declared as NPA/written off by RHFL out of loans extended to linked/associated entities of the group.
United News of India
4 days ago
- Business
- United News of India
Anil Ambani not on boards of companies, says statement after ED raids 35 premises
Mumbai, July 24 (UNI) The Anil Ambani-led Reliance Power and Reliance Infrastructure issued a statement today that raids carried out by the Enforcement Directorate (ED) "have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the companies." "The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCom) or Reliance Home Finance Limited (RHFL), which are more than 10 years old," the statement mentioned. "It is clarified that Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL," the statement clarified. "RCOM has been undergoing the Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 for over 6 years." RHFL has been fully resolved pursuant to the judgement of the Supreme Court. Similar allegations as those set out in the media reports are sub judice and pending before the Securities Appellate Tribunal (SAT), as per publicly available information," according to the statement. "Further, Anil 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 both the companies," the statement maintained. Earlier in the day, the ED raided more than 35 premises and 50 companies linked to the Anil Ambani-led Reliance Group to probe an alleged Rs 3,000-crore Yes Bank loan fraud, where Yes Bank officials allegedly received bribes. According to the ED, the raids and searches were conducted under Section 17 of the Prevention of Money Laundering Act (PMLA), based on two FIRs registered by the Central Bureau of Investigation (CBI) after inputs shared by the including Securities & Exchange Board of India (SEBI), the National Housing Bank (NHB), Bank of Baroda and the National Financial Reporting Authority (NFRA). Preliminary ED investigations showed that loans worth around Rs 3,000 crore, sanctioned by Yes Bank between 2017 and 2019, were allegedly diverted to shell companies and other Anil Ambani group entities. The ED also found evidence suggesting possible bribery of Yes Bank officials, including its promoter Rana Talwar. The ED stated that senior business executives linked to the Anil Ambani group are also being searched as part of a wider investigation. The ED stated that it has gathered evidence of a planned scheme to divert public funds. The ED probe suggests that several entities, including banks, shareholders, investors, and public institutions, may have been misled or cheated in the process of diverting public funds. The ED action follows the State Bank of India's (SBI) recent declaration of Anil Ambani and his company Reliance Communications (RCom) as "fraud". On June 13, 2025, under guidelines issued by the Reserve Bank of India (RBI) about fraud risk management, and as per its internal policy, the SBI had flagged the company and its promoter. Recently, the Minister of State for Finance Pankaj Chaudhary had informed the Lok Sabha that SBI reported the matter to the RBI on June 24, 2025 and the SBI is preparing to file a formal complaint with the CBI. On July 1,the Resolution Professional for Reliance Communications (RCom) informed the Bombay Stock Exchange (BSE) about SBI's decision as part of its disclosure responsibilities. SBI's financial exposure to Reliance Communications includes a fund-based principal amount of Rs 2,227.64 crore along with interest and expenses due since August 26, 2016. The SBI also has a non-fund-based exposure through bank guarantees worth Rs 786.52 crore. The Anil Ambani-led RCom is already under a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. A resolution plan has been approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT) in Mumbai on March 6, 2020. A final decision by the NCLT is still pending. In addition to the company insolvency proceedings, SBI has also started personal insolvency proceedings against Anil Ambani under the same law, and the case is being heard by the NCLT bench in Mumbai. UNI XC ARN SSP
Time of India
5 days 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
Indian Express
6 days ago
- Business
- Indian Express
ED searches on Anil Ambani-linked properties: Reliance Power, Reliance Infrastructure say actions will have no impact
Reliance Group companies, Reliance Power Ltd and Reliance Infrastructure Ltd, on Thursday said the searches conducted by the Enforcement Directorate (ED) on various premises linked to industrialist Anil Ambani in a money laundering case will have 'absolutely no impact' on their business operations, financial performance, shareholders and employees. On Thursday, the ED conducted searches at over 35 premises in Mumbai linked to Ambani in connection with alleged money laundering by Reliance Anil Ambani Group (RAAGA) companies. Fifty companies and 25 individuals are being searched, the central agency said. The enforcement agency has started its investigation on the basis of two FIRs registered by the Central Bureau of Investigation (CBI) and other agencies and institutions. 'The media reports appear to pertain to allegations concerning transactions of Reliance Communications Ltd (RCOM) or Reliance Home Finance Ltd (RHFL) which are over 10 years old. It is clarified that Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL,' the company said in a filing to exchanges. In a separate exchange filing, Reliance Infrastructure said that it was a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM is undergoing Corporate Insolvency Resolution Process (CIPR) as per the Insolvency and Bankruptcy Code, 2016, since over six years. RHFL has been fully resolved pursuant to the judgment of the Supreme Court of India, the companies said. Anil Ambani is not on the Board of Reliance Power and Reliance Infrastructure, the companies said. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on their governance, management, or operations of Reliance Power and Reliance Infrastructure, they said. The ED is also probing the link between a bribe and a loan as they suspect that some bank officials, including the promoters of Yes Bank Ltd, were bribed, the source said. The ED investigation has also allegedly found gross violations in Yes Bank loan approvals to RAAGA companies, such as backdated credit approval memorandums, investments proposed without any due diligence or credit analysis in violation of the bank's credit policy inter alia, etc. It could be noted that in August last year the Securities and Exchange Board of India (SEBI) banned Anil Ambani from the stock market for five years and imposed a fine of Rs 25 crore. The markets regulator alleged fund diversion from Reliance Home Finance (RHFL), a former subsidiary of Reliance Capital.
India.com
6 days ago
- Business
- India.com
Reliance Power, Reliance Infrastructure issue statement after ED raids 35 places, 50 firms linked to Anil Ambani in loan fraud case
Anil Ambani (File) New Delhi: The Enforcement Directorate on Thursday morning raided 35 locations in connection with a loan fraud probe against Anil Ambani-led Reliance Anil Dhirubhai Group companies, people familiar with the development said. ED's action comes after State Bank of India (SBI) decided to classify telecom company Reliance Communications as 'fraud' and will report its former director, Anil Ambani, to the Reserve Bank of India (RBI). The ED is currently examining over 50 companies and 25 individuals believed to be part of the network. Preliminary findings indicate that the promoters of Yes Bank allegedly received funds in their personal accounts shortly before sanctioning large loans to Reliance Anil Ambani Group companies, pointing to a potential quid pro quo. Reliance Power Issues Statement: The company has clarified that the Enforcement Directorate' actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power. 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. 'It is clarified that Reliance Power is 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.' the company said. 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. Further, Mr. Anil D. Ambani is not on the Board of Reliance Power. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power. Reliance Power continues to focus on its business plans and remains committed to creating value for all stakeholders,' it added.
