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. 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.
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. 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.
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