Bank loan fraud case: The Enforcement Directorate has issued summons to Anil Ambani, managing director and chairman of Reliance Group in a bank loan fraud case of Rs 17,000 crore. According to the Economic Times report, the ED has asked him to appear for questioning at the headquarters in Delhi on 5 August.

Last week, the ED raided about 35 locations associated with Reliance Group from Delhi to Mumbai under the Prevention of Money Laundering Act (PMLA). Many documents, financial transactions, digital records and other evidence were seized during these raids.

What is the claim of the investigating agency?

Earlier, the Securities and Exchange Board of India (SEBI) had allegedly submitted its investigation report to ED and two other central investigative agencies regarding fund diversion of Rs 10,000 crore. It is alleged that the loan amount was allegedly diverted to other companies and its use was out of the prescribed objectives, which comes under the purview of money laundering.

The Central Investigation Agency alleges that many companies of Reliance Group from Yes Bank took large loans without any adequate guarantee and those money was spent in other works through shell companies. The first two FIRs were registered by the CBI in this case, after which the ED started the investigation.

Reliance Power’s argument:

Following the allegations of bank loan fraud, Reliance Power and Reliance Infrastructure said in their clarification that they have no commercial or financial relations with Reliance Communications (RCom) or RHFL. At the same time, he also clarified that Anil Ambani is not included in the board of these companies. Significantly, SBI has declared Anil Ambani and RCom as fraud.

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Ed raids on anil ambani companies: The action of raiding the Central Agency ED in Mumbai against the companies of Reliance Group President Anil Ambani continued on Saturday for the third day. The investigating agency seized a large number of documents and computer devices. According to the news agency PTI, the ED started a raid on July 24, taking action in the moneylanding case related to bank loan fraud. Along with this, some companies have also been accused of financial irregularities worth crores of rupees.

Raid on Anil Ambani’s companies

According to PTI, the ED started raids on Thursday under the Prevention of Moneymilandering and raided some locations in more than 35 campuses in Mumbai on Saturday. According to reports, these campuses belong to 50 companies and 25 people, including many officials of Anil Ambani Group companies.

Citing ED sources, news agency PTI further said that between 2017 and 2019, this raid is being conducted on allegations of misuse of loan of about Rs 3000 crore for Yes Bank. Two companies of Reliance Group- Reliance Power and Reliance Infrastructure told the stock market on Thursday in separate information that the action of ED will not have any effect on their business operation, finance performance, shareholders, staff or any other.

Accused of misuse of loan money

It has been said by the companies that the information given in the media reports seems to be associated with allegations related to the transactions of ‘Reliance Communications Limited’ (RCOM) or ‘Reliance Home Finance Limited’ (RHFL). The news agency was further quoted by PTI sources that the investigation has revealed that just before the loan was given, the promoters received funds through their institutions, which indicates bribery transactions.

The agency is investigating the case related to “bribe” and loan. Sources said that in the loan approval given by the federal agency Yes Bank to Reliance Ambani Group companies, the loan documents of the previous date, proposing the bank’s loan policy clearly violating the bank’s loan policy, proposing investment without any appropriate investigation or loan analysis like “gross violations” are investigating allegations.

The case of misuse of the alleged loan fund of about Rs 10,000 crore associated with Reliance Infrastructure is also under the investigation of the agency. It is believed that a report of SEBI regarding ‘Reliance Home Finance Limited’ (RHFL) also became the basis of the ED investigation.

According to market regulator findings, corporate loans given by RHFL saw an increase, which increased from Rs 3,742.60 crore in FY 2017-18 to Rs 8,670.80 crore in FY 2018-19. Companies also said in the information given to the stock market that Anil Ambani was neither on the board of ‘Reliance Power’ nor ‘Reliance Infrastructure’ and has no commercial or financial relations with ‘Reliance Communications’ or ‘Reliance Home Finance Limited’.

Companies said that any action taken against ‘Reliance Communications’ or ‘Reliance Home Finance Limited’ will not affect the operation and management of ‘Reliance Power’ or ‘Reliance Infrastructure’.

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