New Delhi [India], August 6 (ANI): Industrialist Anil Ambani has requested a period of seven days to furnish the necessary details and supporting documents sought by the Enforcement Directorate in the probe against him in an alleged Rs 17,000-crore loan fraud case.
The request comes amid nine hours of questioning with Anil Ambani by the investigators at the Enforcement Directorate headquarters in the case pertaining to the suspected financial irregularities and possible violations under the Prevention of Money Laundering Act (PMLA).
Officials in ED indicated that Anil Ambani assured full cooperation with the authorities and intended to provide all relevant information within the stipulated time.
“Today, the statement of Anil Ambani was recorded. During the examination, various questions pertaining to loan transactions were put to him. Anil Ambani sought a period of seven days to furnish the requisite details and supporting documents,” officials told ANI.
The 66-year-old businessman deposed before the investors at the agency’s headquarters here in the national capital around 11 am following a summons issued to him last week asking to join the investigation on August 5 (today). He was questioned till 8 pm.
The agency is examining the role of various entities and individuals linked to the case, and Ambani’s statement is expected to play a crucial role in the investigation.
It was the first time that the ED questioned Anil Ambani. The action was taken almost 12 days after the ED launched a massive search operation at 35 premises, 50 companies and over 25 persons linked to a money laundering case against Reliance Anil Ambani Group (RAAGA) Companies. The raids were carried out on July 24. The action followed an investigation launched by the ED under the offence of money laundering by RAAGA companies, subsequent to the recording of a First Information Report by the Central Bureau of Investigation.
As per the officials, ED’s investigation is based on information shared with the agency by other agencies and institutions such as the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda.
Earlier, ED had issued a Look Out Circular (LOC) against Anil Ambani in connection with the case.
“Preliminary investigation by ED has revealed a well-planned and thought-out scheme to divert and siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials, including the promoter of Yes Banks Limited, is also under scanner,” Officials have said.
Preliminary investigation reveals illegal loan diversion of around Rs 3,000 crores from Yes Bank (period 2017 to 2019).
ED then said it had found that “just before the loan was granted, the Yes Bank promoters received money in their concerns.” “ED is investigating this nexus of bribery and the loan.”
“ED has found gross violations in Yes Bank loan approvals to RAAGA companies, such as, Credit Approval Memorandums (CAMs) were back-dated, Investments were proposed without any due diligence and credit analysis in violation of Banks Credit Policy inter alia,” said the Officials.
In violation of the loan terms, the officials said, these loans were further diverted to many group companies and shell companies.
“Some red flags found by ED include- loans given to entities with weak financials, no proper documentation of loans, no due diligence, borrowers have common addresses, and common directors etc., diversion of loans to promoter group entities, ever greening of GPC loans, loans onward lent on same date, loans disbursed on same date as date of application, loans disbursed prior to sanction, Misrepresentation of financials,” the officials said earlier.
It is also informed that “Securities and Exchange Board of India (SEBI) is also learnt to have shared its findings with ED in the case of RHFL.”
“Dramatic increase in corporate loans by RHFL, from Rs 3,742.60 crore in Financial Year 2017-18 to Rs 8,670.80 crore in Financial Year 2018-19 is also under ED lens. Issues of irregular and expedited approvals, process deviations many other illegalities have been found,” added the officials.
As per officials, Reliance Communications Ltd has also committed a loan fraud of over Rs 14,000 crores.
“Bank of India (SBI) had classified Reliance Communications (RCom) and its promoter, Anil Ambani, as ‘fraudulent’ in accordance with RBI guidelines. SBI reported this classification to the RBI and is preparing to file a complaint with the Central Bureau of Investigation (CBI),” officials said.
It is also informed that “Reliance Communications Ltd has also cheated Canara Bank of more than Rs 1,050 crores.”
“Undisclosed Foreign Bank Accounts and Foreign Assets are also being investigated. Investigations are likely to reveal more,” said the officials.
It has also found that “Reliance mutual fund invested Rs 2,850 crore in AT-1 bonds of YES Bank (perpetual FDs) for suspected quid pro quo.” “These bonds were eventually written down, money siphoned off. This was the money of public, the mutual fund investors. CBI is also investigating this issue.” said the officials.
Furthermore, based on information received from SEBI, ED said it has found that Reliance Infra has diverted large sum of money disguised as ICDs to Group Companies of RAAGA through C Company, an undisclosed related party company. Reliance Infra did not disclose C Company as its related party in order to avoid proper approval from shareholder and audit committee.
“It was also hidden presumably to circumvent checks and balances imposed on related party transaction as per laws,” said the officials.
It has been found that “R Infra has taken a haircut of Rs 5,480 crore and only Rs 4 crore has been received in cash.”
“Remaining Rs 6,499 crores has been settled in the form of assignment, transfer of assets and economic rights mainly in certain discoms. These discoms have not had any business for the previous many years and are not operational. Therefore, there are zero chances of recovery of this amount. The loan diversion in this case is over Rs. 10,000 crores,” the official said.
In a statement, Reliance Infrastructure had earlier clarified reports pertaining to an over 10-year-old matter as regards the alleged diversion of Rs 10,000 crore to an undisclosed related party, when the exposure as per the disclosures in the Company’s financial statements is only around Rs 6,500 crores.
“In this connection, attention is invited that Reliance Infrastructure had publicly disclosed this matter on February 9, 2025, nearly six months ago,” Reliance Infrastructure’s statement has said.
“Reliance Infrastructure Limited had a net exposure of Rs 6,500 crore, which was duly disclosed in its financial statements for the past four years. Reliance Infrastructure diligently pursued the recovery of its dues in this matter. Through mandatory mediation proceedings conducted by a retired Supreme Court Judge and the mediation award filed before the Hon’ Bombay
High Court, Reliance Infrastructure arrived at a settlement to recover its 100 per cent exposure of Rs 6,500 crore.”
Further, it said, “Anil D. Ambani is not on the Board of Reliance Infrastructure since more than three years i.e. March 2022.” (ANI)
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