New Delhi [India], November 7 (ANI): The Enforcement Directorate has summoned industrialist Anil Ambani to appear at its headquarters in Delhi on November 14 in connection with an investigation under the Foreign Exchange Management Act (FEMA).
The ED is investigating alleged illegal outward remittances, undisclosed foreign assets and offshore entities in connection with Ambani and companies in the Reliance Anil Ambani Group (RAAG).
One specific allegation in a FEMA probe linked to Reliance Infrastructure Limited (R-Infra, part of RAAG) in which the ED has claimed that Rs 40 crore from a Jaipur-Reengus highway project was “siphoned” abroad via shell companies in Surat to Dubai, and that a larger international hawala network exceeding Rs 600 crore was detected.
The probe includes searches at several premises of R-Infra (six sites in Mumbai and Indore) under FEMA for “illegal remittances abroad”.
There are also probes into undisclosed offshore assets and entities incorporated in jurisdictions such as Jersey, the British Virgin Islands (BVI), and Cyprus, linked to Ambani’s group.
The ED has stated that the hawala network linked to these transactions “exceeds Rs 600 crore”.
The specific figure of Rs 40 crore is cited for the remittance abroad for the highway project.
In the 2023 questioning, Ambani was questioned for over seven hours in a FEMA case arising from the I-T department’s findings of undeclared offshore assets of approximately Rs 800 crore.
On August 5 this year, the ED had also recorded the statement of Ambani on various points pertaining to loan transactions that were put to him. Ambani sought a period of seven days to furnish the requisite details and supporting documents then.
He was then questioned in connection with an ongoing investigation into an alleged Rs 17,000-crore loan fraud case.
ED is probing the loan fraud of Reliance Communications Ltd of over Rs 14,000 crores. It is noteworthy that Minister of State for Finance Pankaj Chaudhary confirmed in Parliament that the State 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).
Reliance Communications Ltd is also alleged to have cheated Canara Bank of more than Rs. 1,050 crores.
Highly placed sources confirmed that undisclosed foreign bank accounts and foreign assets are also being investigated.
Earlier, the ED had also said that it had found that Reliance Mutual Fund had invested Rs 2,850 crore in AT-1 bonds of YES Bank (perpetual FDs) for a suspected quid pro quo. “These bonds were eventually written down, and money was siphoned off. This was the money of the public, the mutual fund investors. CBI is also investigating this issue.”
Furthermore, based on information received from SEBI, ED has found that Reliance Infra has diverted a 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 a related party in order to avoid proper approval from shareholders and the audit committee.
“It was also hidden presumably to circumvent checks and balances imposed on related party transactions as per laws,” the agency has said.
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 and transfer of assets/economic rights mainly in certain Discoms. These Discoms have not had any business for 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 ED earlier added.
Recently, ED’s Special Task Force attached over 132 acres of land in Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai worth Rs 4,462.81 crore under the Prevention of Money Laundering Act (PMLA), 2002.
This attachment comes in connection with the ongoing probe into the bank fraud cases involving Reliance Communications Ltd. (RCOM), Reliance Commercial Finance Ltd., and Reliance Home Finance Ltd.
The total value of assets attached by the ED in cases linked to the Reliance Anil Ambani Group has now risen to over Rs 7,500 crore, including earlier attachments worth Rs 3,083 crore.
The money-laundering probe stems from a Central Bureau of Investigation (CBI) FIR registered under sections 120-B, 406 and 420 of the Indian Penal Code and sections 13(2) read with 13(1)(d) of the Prevention of Corruption Act, naming RCOM, Anil Ambani, and others.
According to the ED, RCOM and its group companies availed loans from both domestic and foreign lenders between 2010 and 2012, with total outstanding dues amounting to Rs 40,185 crore. “Five banks have since declared the accounts of the group as fraudulent.”
The investigation has revealed that loans raised by one entity were used to repay borrowings of other group companies, routed to related parties, or invested in mutual funds, in violation of the loan terms.
The agency alleged that over Rs 13,600 crore was diverted for evergreening of loans, Rs 12,600 crore was funnelled to connected parties, and around Rs 1,800 crore was invested in fixed deposits and mutual funds, which were later liquidated and rerouted to group entities.
The ED also detected large-scale misuse of bill discounting mechanisms and alleged siphoning of funds abroad through foreign remittances.
The agency reiterated its commitment to pursuing financial crime cases and ensuring that the proceeds of crime are recovered and restituted to rightful claimants. (ANI)
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