Anil Ambani: The Enforcement Directorate (ED) has frozen Rs 77.86 crore kept in the bank accounts of Anil Ambani group company Reliance Infrastructure on charges of FEMA violations.

Reliance Infrastructure said in its regulatory filing on BSE, “The company has today received an order from ED, under which Rs 77.86 crore held in the bank accounts of the company has been frozen in case of alleged violations under FEMA.” FEMA (Foreign Exchange Management Act) are laws related to foreign exchange.

ED has sent summons twice

Earlier, ED has sent summons to Reliance ADAG promoter Anil Ambani twice in the FEMA case. However, Anil Ambani did not appear in the court and had demanded to present his views before the investigating agency virtually or through recorded video, which was rejected. Actions taken under FEMA are civil in nature, unlike criminal proceedings under the Anti-Money Laundering Act. This investigation of ED is related to Jaipur-Ringas Highway Project.

What is ED’s allegation?

ED alleges that Reliance Infrastructure illegally sent Rs 100 crore received from the National Highways Authority of India (NHAI) for the construction of JR Toll Road (Jaipur-Ringas Highway) to the United Arab Emirates (UAE) through the hawala route.

However, while giving clarification on this allegation made by ED, Anil Ambani’s spokesperson has earlier said that the FEMA case is 15 years old and dates back to 2010. This includes the case of contracts awarded for road construction. The statement said that Reliance Infrastructure had won an EPC contract that year to build the JR Toll Road (Jaipur-Ringas Highway). This was a domestic project, with no foreign exchange component involved. The highway work has been completed and from 2021 it is under the National Highway Authority of India.

Action against son Jai Anmol also

Here, along with Anil Ambani, the problems of his son Jai Anmol are also increasing. CBI has registered a case against him for defrauding Union Bank of India of Rs 228 crore. According to PTI report, in this connection, CBI also searched Jai Anmol’s house in Sea Wind, Cuffe Parade. This case is related to Reliance Home Finance Limited and the loan default related to it, in which earlier action has also been taken against Anil Ambani.

Actually, Reliance Home Finance Limited had taken a corporate loan of Rs 450 crore from Mumbai SCF branch of Union Bank. The bank claims that this loan taken for business was diverted elsewhere, due to which the bank has suffered a loss of Rs 228.06 crore.

movement in shares

The impact of this news was visible on the shares of Anil Ambani Group (ADAG) companies on Wednesday, December 10, which fell by 5 percent. On Wednesday, the share price of Reliance Power fell by more than 4 percent to the day’s lowest level of Rs 34.18. Meanwhile, Reliance Infra stock also touched almost 5 per cent lower price band at Rs 132.90 — which is also its 52-week low. Shares may be in action today too.

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Reliance Power News: Anil Ambani’s Reliance Company Group is facing troubles one after the other. On Monday, October 13, there was a huge fall in the shares of power sector firm Reliance Power. Due to which the company’s shares fell by about 10.5 percent. The share price of the company started trading around Rs 43. Besides, a decline of 4.5 percent was also recorded in the shares of Reliance Infrastructure.

The company’s senior executive Ashok Kumar Pal was arrested by the ED on Saturday in the fake bank guarantee case. After a long conversation, Ashok Pal was arrested from his office in Mumbai. The negative impact of which was seen in the first trading session of the week and the shares of the company remained weak. Due to which investors had to suffer huge losses.

ED action

After the arrest of Ashok Pal, he was sent to custody for 2 days. After several hours of long interrogation, ED presented him in the court today. ED is taking action against Ashok Pal on allegations of his involvement in a suspected bank guarantee scam of about Rs 68.2 crore. An ongoing investigation is being conducted into financial irregularities in Reliance Group. According to the information received, this investigation was started by ED on July 24.

Till now, ED has investigated 35 places, 50 companies and more than 25 people associated with Anil Ambani Group. ED fears that the loan of Rs 3000 crore taken from Yes Bank has been misused. This loan was taken between 2017 and 2019.

Company’s stocks went up with a bang

On Friday, October 10, Reliance Power’s shares had registered a huge rise in the Indian stock market. There was a jump of 15 percent in the company’s shares and its price reached Rs 50.75. Talking about the share prices of the company, it was trading at Rs 2.75 on 9 October 2020. On Monday, the power sector firm closed trading at Rs 46.25 on BSE with a decline of 4.84 percent.

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Anil Ambani News: Veteran industrialist Anil Ambani’s troubles are showing no sign of abating. Now the Central Bureau of Investigation (CBI) has made another shocking revelation about him. The CBI charge sheet against Anil Ambani’s Reliance ADA Group and Yes Bank co-founder Rana Kapoor has alleged transactions between the companies of the two families.

Big revelation in CBI charge sheet

According to the Economic Times (ET) report, the charge sheet also states that Ambani’s son Jai Anmol Ambani was involved in some decisions related to these transactions. The chargesheet, filed in 2022, is based on two criminal cases filed by the Chief Vigilance Officer of Yes Bank against former Yes Bank MD and CEO Rana Kapoor and Reliance Group’s Reliance Commercial Finance Limited (RCFL), Reliance Home Finance Limited (RHFL) and others.

The investigation found that Yes Bank invested Rs 2,045 crore in debentures and commercial papers of RCFL and Rs 2,965 crore in RHFL in 2017, which were approved by Rana Kapoor, while Care Ratings had placed ADA Group under observation due to its weak financial position. Later this amount was diverted at many levels, due to which public money was misused.

money transaction between two

CBI says that during that period, several money transactions took place between ADA Group companies, Yes Bank and Reliance Nippon Asset Management. On one hand, ADA Group companies received funds from Yes Bank and on the other hand, Yes Bank made a major investment in its capital instruments from Reliance Nippon Mutual Fund (RNMF), which at that time was a subsidiary of Reliance Capital along with Nippon Life Insurance of Japan.

RNMF also invested Rs 1,160 crore in debentures of Kapoor family company Morgan Credits Private Limited in 2017-18. Additionally, it purchased ADA Group debentures worth Rs 249.80 crore from Yes Bank and invested Rs 1,750 crore in unsecured AT1 bonds of Yes Bank, which can be converted into equity or written-off during the financial crisis.

In this way, Ambani and Kapoor together created a system by which both could help each other financially and maintain a flow of money. The investigation found that Rana Kapoor and Anil Ambani together diverted the funds received from Yes Bank to the financially weak ADA Group companies. In return, ADA Group provided low-interest loan facilities and investments to the companies of Kapoor’s wife Bindu Kapoor and daughters Radha and Roshni Kapoor.

Anil Ambani’s son’s name also surfaced

The chargesheet also stated that Ambani’s son Jai Anmol Ambani directly influenced the investment decisions in RNMF while the company was preparing to be listed on the stock exchanges. CBI says that RNMF had huge funds received from common investors, which it could have invested in long-term debt instruments. However, market regulator SEBI regulations prevent mutual funds from investing in long-term debt investments.

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On Friday, the companies of the Adag Group led by Anil Ambani in the stock market once again rocked. Reliance Power, Reliance Home Finance and Reliance Infrastructure, the three shares saw a tremendous rise. Although Reliance Power was at the forefront of these, this stock saw a rise of 19 percent in a day. Due to this boom, there was a wave of expectations among investors. Along with this, now the question has also started to arise whether this bounce is just a glimpse or the start of a long race?

Stormy boom in shares

On Friday, Reliance Power’s shares jumped 19 per cent to Rs 53, while Reliance Home Finance rose by 10 per cent and closed at Rs 3.64. On the other hand, Reliance Infrastructure shares jumped 10.5 per cent to Rs 313. There are not only the market mood behind this rally, but concrete reasons and recent steps of the company.

Reliance Power is coming so fast

If seen, there are two main companies behind this fast, Reliance Power and Reliance Infrastructure. Both companies have seen a period of heavy debt and weak performance in the past, but now their strategy, financial situation and future plans are giving new confidence to the market.

Talking about Reliance Power, it is now engaged in establishing itself as a major reabble energy player, not just power producers. Recently, Reliance’s subsidiary Nu Suntech has signed a 930 MW Solar Power and 1860 MWH battery storage deal for 25 years. This project of about 10,000 thousand crores will be the largest solar+storage plant in Asia.

At the same time, Nu Energies has also won the 350 MW Solar + 700 MWH storage project, which has strengthened the company’s clean energy portfolio. On the other hand, the term sheet has been signed with the Bhutan government for 500 MW solar project. This 2,000 crore joint venture is the largest private foreign investment ever in Bhutan.

Return to profit new fund and strong balance sheet

Reliance Power recorded a profit of 126 crores in the March quarter, while the company had a loss of 397 crores in the same quarter last year. This turnaround has been possible due to reduction in expenses and decreased finance cost.

In addition, in May, Reliance Power did a capital rage of 392 crores, which came through the warrant conversion by Reliance Infrastructure and Basra Home Finance. This has improved the company’s financial situation and increased flexibility.

Disclaimer: (Information provided here is being given only for information. It is necessary to tell here that the investment market is subject to risks. Always consult expert before investing as an investor. Never is advised to invest money from Abplive.com.

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The shares of Anil Ambani’s company Reliance Power have shown a great rise of about 20 percent in the last one month. This performance is much better than major indices Nifty (1.60 per cent), Sensex (1.52 per cent) and bank Nifty (6.13 per cent). The company’s stock is currently trading at a level of Rs 40 in March 2020 to rise from a historic low of Rs 1.

Company’s financial condition

According to The Mint’s report, Reliance Power has taken several important steps to reduce its debt in recent times. The debt-to-equity ratio of the company has come down from 1.61 to 0.86. This improvement is mainly after selling IndusInd International Holdings of Reliance Capital. However, the company is still tied to non-convertible debentures (NCDs) of Rs 250 crore.

Quarterly results improve

In the quarter of September 2024, the company recorded a net profit of Rs 2,878 crore, including an extra -ordinary income of Rs 3,000 crore. This income was obtained from Vidarbha Industries Power Limited (VIPL) Deccolidation. In the December 2024 quarter, the company recorded a net profit of Rs 42 crore.

Future projects

The company has planned to invest in green energy projects. Under this, green energy projects will be started in Andhra Pradesh. The company’s subsidiary has achieved Asia’s largest solar and battery storage project.

How far can the price go

According to The Mint’s report, Mahesh M Ojha, AVP Research of Hensex Securities, says that the share of Reliance Power has made a strong base at the level of Rs 36. According to him, if the stock crosses the level of Rs 44, it can reach the level of Rs 48 and 52. However, investors should make positions in this stock with stop loss at Rs 36.

Disclaimer: (The information provided here is being given only for information. It is necessary to tell here that the investment in the market is subject to risks. Always consult expert before investing as an investor. Abplive.com is never advised to invest money here.)

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