ED questions Anil Ambani over ₹17,000cr loan fraud
What's the story
Anil Ambani, the chairman and managing director of Reliance Group (RAAGA companies), has appeared before the Enforcement Directorate (ED) today. He was summoned last week in connection with a money laundering probe linked to an alleged bank loan fraud worth ₹17,000 crore against his group companies. Ambani reached the ED headquarters in New Delhi early this morning for questioning.
Investigation details
ED raided several locations in Mumbai, Delhi last week
Last week, the ED raided several locations in Mumbai and Delhi linked to Ambani's Reliance Group. The investigators seized a large number of documents, hard disks, and other electronic evidence during these searches. The operation is part of a larger probe into alleged financial irregularities such as possible fund diversion, loan frauds, and money laundering activities.
Probe focus
CBI also probing Reliance Group companies
The ED is investigating if bank funds were diverted through shell companies and misused by group firms. The Central Bureau of Investigation (CBI) has also launched a separate probe into other companies in Ambani's Reliance Group. After FIRs filed by the CBI, the ED began probing money laundering offenses under the Prevention of MoneyLaundering Act (PMLA).
Scheme revelation
ED probing bribery of bank officials
The ED's preliminary investigation has uncovered a well-planned scheme to divert public money by cheating banks, shareholders, investors, and other public institutions. The agency is also probing bribery of bank officials including the Promoter of Yes Bank Limited. The probe involves loans taken from nearly 20 public and private sector banks.
Company involvement
Companies involved in alleged loan fraud case
The companies involved in the alleged loan fraud case are Reliance Home Finance Ltd (RHFL), Reliance Commercial Finance Ltd (RCFL), and Reliance Communications (RCom). According to ED data, RHFL owes over ₹5,901 crore, RCFL over ₹8,226 crore and RCom nearly ₹4,105 crore. The agency plans to summon senior officials of lending banks in the coming days to investigate their credit assessment processes and actions taken against defaulting companies.
Arrest details
Arrests made in this case
The ED's first arrest in this case was Partha Sarathi Biswal, the managing director of Odisha-based Biswal Tradelink Pvt Ltd (BTPL). He was arrested for allegedly arranging a fake bank guarantee worth ₹68 crore for a Reliance Group company. The agency claims it has traced proceeds of crime worth several crores to at least seven undisclosed bank accounts linked to BTPL.