ED makes first arrest in Anil Ambani-linked ₹3,000cr fraud probe
What's the story
The Enforcement Directorate (ED) has arrested Partha Sarathi Biswal, the Managing Director of Biswal Tradelink Pvt. Ltd. (BTPL), in a money laundering case linked to an alleged bank loan fraud involving the Anil Dhirubhai Ambani Group (ADAG). The arrest was made under the Prevention of MoneyLaundering Act (PMLA), 2002. It comes after extensive searches at BTPL's offices in Bhubaneswar and Kolkata by the ED on Friday.
Fraud details
Case against BTPL initiated by Delhi Police's EOW
The case against BTPL stems from an FIR lodged by the Economic Offences Wing (EOW) of Delhi Police. The company and its directors are accused of submitting a fake bank guarantee to the Solar Energy Corporation of India (SECI). The ED's investigation found that BTPL had fraudulently arranged fake bank guarantees worth ₹68 crore, using forged endorsements from State Bank of India and fabricated confirmation emails from spoofed SBI email IDs.
Corporate link
Financial trail linking Reliance Power to fraudulent operations
The ED has also discovered that BTPL allegedly received ₹5.4 crore from Reliance Power Ltd., an Anil Ambani-owned company, for facilitating the fake bank guarantee. This financial trail is a key element linking BTPL's fraudulent operations to Ambani's corporate network. The investigation further revealed that BTPL, a relatively obscure firm incorporated in 2019, maintained multiple undisclosed bank accounts and carried out financial transactions grossly disproportionate to its reported turnover.
Compliance issues
Regulatory violations and dummy directors suspected
The ED's investigation also found several regulatory violations by BTPL. Statutory records such as books of accounts and shareholder registers were missing from the company's registered office. The agency suspects dummy directors were used to conceal true ownership and facilitate money laundering. Biswal was produced before a court after his arrest and has been remanded to ED custody till August 6 for further questioning.
Corporate statement
Reliance Group maintains all subsidiaries acted in good faith
In light of the recent developments, the Reliance Group has maintained that all its subsidiaries acted in good faith and were victims of fraud, forgery, and a cheating conspiracy. Meanwhile, the ED has summoned Anil Ambani for questioning on August 5 in connection with this case. The investigation centers around BTPL's alleged role in a racket that issued fake bank guarantees to business groups.