Highlights
- The Enforcement Directorate (ED) has frozen assets worth ₹7,500 crore that are belonging to the various RAG (Reliance Anil Ambani Group) companies.
- A large part of the properties is 132 acres of Dhirubhai Ambani Knowledge City land Navi Mumbai which is worth ₹4,462 crore.
- Five banks that have declared fraud in loan accounts of Reliance Communications have reported an outstanding of ₹40,185 crore related to the fraud.
Reliance Anil Ambani Group Loses Huge Properties
Breaking News: As part of a money laundering investigation, the Enforcement Directorate on Monday took over the properties worth nearly ₹7,500 crore that belong to the companies of the Reliance Anil Ambani Group. The most substantial piece is 132 acres of land at the Dhirubhai Ambani Knowledge City in Navi Mumbai that is worth more than ₹4,462 crore.
The ED is surveying a bank fraud case against Reliance Communications Limited, Anil Ambani, and a few others. It started with a CBI FIR, and now, the ED agency is following the money chain. The seized properties are scattered in the different areas of Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, Chennai, and East Godavari of Andhra Pradesh.
Anil Ambani Companies Owe Banks Over ₹40,000 Crore
The ED alleges that Reliance Communications along with its associated companies had taken loans from both Indian and foreign banks between 2010 and 2012. Out of that, a total of ₹40,185 crore has not been paid off. Five banks have declared the loan accounts as fraudulent in which they are involved. In similar cases involving Reliance Commercial Finance and Reliance Home Finance, the agency had already frozen 42 other properties with a total value of ₹3,083 crore.
The latest move is about 30 properties of Reliance Infrastructure Limited, five of Adhar Property Consultancy, four of Mohanbir Hi-tech Build, and one each from three other companies. According to the ED, the Anil Ambani Group companies comprising Reliance Communications, Reliance Home Finance, Reliance Commercial Finance, Reliance Infrastructure, and Reliance Power, etc. have been involved in fraudulent practices of money diversion.
How Reliance Group Allegedly Rotated Its Money
ED alleges that the money obtained from a bank loan for a company was used to repay the loans of other companies that were taken from the banks that were different. This is a violation of the banking rules that are set for loans. The report says that more than 13,600 crores of rupees were diverted to evergreen loans, more than 12,600 crores were transferred to related parties, and more than 1,800 crores were invested in fixed deposits and mutual funds and then remitted to the group companies.
The agency also mentions that some part of the money was sent out of India via foreign transfers. During 2017-2019, Yes Bank put ₹2,965 crore in Reliance Home Finance and ₹2,045 crore in Reliance Commercial Finance. By the end of 2019, both became non-performing assets with ₹1,353.50 crore and ₹1,984 crore still to be recovered.
According to the foreign exchange laws, the ED has located a sum of ₹40 crore, which was taken from the Jaipur highway project and sent to Dubai, routed through companies in Surat, thus revealing what the agency is calling an international money transfer network with a value of over ₹600 crore. Reliance Infrastructure in a statement to the stock market said that the ED’s action has not impacted their business, shareholders, employees, or anyone else.
FAQs
Q: What did the ED seize from Anil Ambani’s Reliance Group?
A: The Enforcement Directorate attached assets worth ₹7,500 crore that included 132 acres of land in Navi Mumbai and 42 properties spread across different cities.
Q: Why is the ED investigating Reliance Anil Ambani Group companies?
A: Banks have classified the loans given to RComm and the group of companies as a case of fraud. The total outstanding amount is ₹40,185 crore which has not been serviced.
Q: How did the Anil Ambani Group allegedly misuse bank loans?
A: According to the ED, the company used bank loans from one bank to pay the loans at other banks, transferred funds to related companies, and, in some instances, money was sent outside India illegally.
Q: Is Anil Ambani still running these Reliance companies?
A: No, according to the statement by Reliance Infrastructure, Anil Ambani parted ways with their board more than 3.5 years ago. He also stepped down from the board of Reliance Communications in 2019.
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