ED Constitutes Special Investigation Team to Probe Massive Rs 40,000 Crore Money Laundering Case Involving Anil Ambani
In a significant development, the Enforcement Directorate (ED) has established a special investigation team (SIT) to investigate money laundering cases allegedly involving a staggering Rs 40,000 crore against industrialist Anil Ambani and companies of the Reliance Group. This move comes in direct compliance with a directive from the Supreme Court of India, which issued the order on February 4.
Supreme Court Directive and Escalating Probe
The Supreme Court had explicitly instructed the ED to scrutinize every possible financial transaction that might have led to the siphoning of funds and to determine the estimated value of the proceeds of crime. In its February 4 order, the court stated, "Having gone through ED’s counter affidavit, it appears to us that the aforesaid agency ought to look into every possible financial transaction which might have led to siphoning of funds and must determine the estimated value of the proceeds of crime. ED is well advised to constitute an SIT." The matter has been scheduled for further hearing on March 10.
This action marks an intensification of the ED's ongoing probe against Anil Ambani. The agency had planned to question his wife, Tina Ambani, on Monday at its headquarters in New Delhi, but she did not appear. She may be summoned again in the near future. The purpose of this questioning is to establish the money trail in a case related to the purchase of a luxury apartment worth Rs 70 crore in Manhattan, New York.
Manhattan Apartment and Arrest of Confidant
The Manhattan apartment case gained prominence following the arrest last week of Punit Garg, a senior Reliance executive and close confidant of Anil Ambani. During Garg's custodial interrogation, Tina Ambani's name emerged, linking her to the investigation. Sources suspect that the apartment was purchased using alleged proceeds of crime siphoned off from bank loans that Reliance Communication had received from a consortium led by the State Bank of India (SBI).
The ED has uncovered a complex network of shell entities involved in money laundering activities. One such entity received the sale proceeds of $8.3 million from the Manhattan apartment, which were "remitted from the US under the guise of a sham investment arrangement with a Dubai-based entity controlled by a Pakistan-linked individual."
Multiple Cases and Financial Defaults
In line with the Supreme Court's directive for the registration of separate cases in each instance of alleged diversion of bank loans by Anil Ambani's companies, both the Central Bureau of Investigation (CBI) and the ED are preparing to file multiple cases against him. The CBI, in particular, may need to file numerous cases since the allegations involve more than twenty loans taken from various financial institutions.
So far, the ED has conducted searches at 46 premises and attached 204 properties valued at over Rs 12,000 crore as part of its probe against Anil Ambani and his entities. The agency has registered three enforcement case investigation reports (ECIRs), equivalent to police FIRs, under the Prevention of Money Laundering Act (PMLA).
- Yes Bank Money Laundering Case: The first ECIR targets Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL). The ED informed the Supreme Court that RHFL borrowed public funds from 33 banks and financial institutions, defaulting on over Rs 5,400 crore, which constitutes proceeds of crime. Lenders recovered only Rs 2,116.9 crore. For RCFL, 21 institutions faced defaults of Rs 6,281 crore, with only Rs 1,945 crore repaid out of Rs 8,226 crore.
- Reliance Communications Ltd Case: The second ECIR involves Reliance Communications Ltd, with a total outstanding amount of Rs 40,185 crore identified as proceeds of crime.
- Reliance Power Ltd Case: The third ECIR is against Reliance Power Ltd, where allegedly forged bank guarantees were submitted. Three accused have been held in connection with this case.
The formation of the SIT underscores the seriousness of the allegations and the commitment of Indian authorities to thoroughly investigate financial crimes of this magnitude, ensuring accountability and justice in high-profile corporate cases.
