The Enforcement Directorate (ED) has intensified its crackdown on financial irregularities by attaching fresh assets valued at over Rs 1,800 crore in connection with a money laundering investigation targeting companies associated with Reliance Group chairman Anil Ambani. This latest move significantly escalates the total value of assets seized by the federal agency in this ongoing probe to approximately Rs 12,000 crore, underscoring the scale of the alleged financial misconduct.
Details of the Fresh Asset Attachments
In a statement released on Wednesday, the ED disclosed that it has issued four separate provisional orders under the Prevention of Money Laundering Act (PMLA) to effect these attachments. The newly attached properties encompass a diverse range of assets, including bank deposits, shareholdings in unquoted investments, and certain immovable properties. Specifically, the attachment includes the shareholding of Reliance Infrastructure in key entities such as BSES Yamuna Power, BSES Rajdhani Power, and Mumbai Metro One Private.
Breakdown of Attached Assets
The ED spokesperson elaborated that the attachments are linked to multiple cases, including those involving Reliance Home Finance Ltd (RHFL), Reliance Commercial Finance Ltd (RCFL), the Yes Bank fraud, and an alleged fraud concerning Reliance Communication Ltd. Among the notable seizures are bank deposits amounting to Rs 148 crore and receivables worth Rs 143 crore, which were held by Value Corp Finance And Securities Limited. Additionally, a residential property registered in the name of senior company executive Angarai Sethuraman, along with shares and mutual funds belonging to another senior employee, Puneet Garg, have been provisionally attached. The cumulative value of these assets stands at Rs 1,885 crore.
Allegations of Fraudulent Diversion of Funds
The agency has leveled serious allegations against various Reliance Anil Ambani group companies, accusing them of orchestrating a fraudulent diversion of public funds. According to the ED, companies such as Reliance Communications (RCom), RHFL, RCFL, Reliance Infrastructure Ltd (RIL), and Reliance Power Ltd (RPL) are implicated in these activities. During the period from 2017 to 2019, Yes Bank invested substantial sums—Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL. By December 2019, these investments had turned non-performing, with outstanding amounts of Rs 1,353.50 crore for RHFL and Rs 1,984 crore for RCFL. The ED spokesperson noted that RHFL and RCFL collectively received public funds exceeding Rs 11,000 crore.
Complex Financial Routing and Regulatory Violations
Further complicating the case, the ED revealed that prior to Yes Bank's investments in the Anil Ambani group companies, the bank had received significant funds from the erstwhile Reliance Nippon Mutual Fund. Due to SEBI regulations prohibiting direct investments by the mutual fund in Anil Ambani group companies to avoid conflicts of interest, public money from mutual fund schemes was allegedly routed indirectly through Yes Bank's exposures. This intricate financial maneuvering is a key focus of the investigation.
Ongoing Investigations and Broader Implications
The ED is also probing RCom, Anil Ambani, and other individuals based on a Central Bureau of Investigation (CBI) FIR. The agency claims that RCom and its group companies secured loans from domestic and foreign lenders starting from 2010-2012, with a total outstanding amount of Rs 40,185 crore. Notably, nine banks have declared the loan accounts of the group as fraud. The ED alleges that over Rs 13,600 crore was diverted for evergreening of loans, more than Rs 12,600 crore was funneled to connected parties, and over Rs 1,800 crore was invested in fixed deposits and mutual funds, which were largely liquidated and rerouted to group entities. Additionally, the agency has detected significant misuse of bill discounting mechanisms to channel funds to related parties.
As of now, the spokesperson for the Anil Ambani group of companies has not responded to queries regarding these developments. The case continues to unfold, highlighting critical issues in corporate governance and financial regulation within India's business landscape.
