ED seizes ₹1,120cr in fresh assets from Anil Ambani group
What's the story
The Enforcement Directorate (ED) has attached assets worth ₹1,120 crore from the Reliance Anil Ambani Group as part of a money laundering probe. The action is linked to alleged fraud at Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), and Yes Bank. The attached assets include properties, fixed deposits, bank balances, and unquoted investments associated with these companies. This fresh action takes the cumulative value of all attachments so far in the case to over ₹10,000 crore.
Fraud investigation
ED's findings reveal indirect routing of funds
The ED's probe found that these funds, over ₹10,000 crore in total, were indirectly routed through Yes Bank to circumvent SEBI's conflict-of-interest rules. These rules restrict direct mutual fund investments in Anil Ambani Group entities. Instead of direct investments, public money from schemes like Reliance Nippon Mutual Fund was allegedly laundered through bank exposures. The proceeds were then diverted to group companies for loan evergreening and other purposes.
Asset seizure
ED's action brings total seized assets to ₹10,000 crore
The latest provisional attachment under the Prevention of Money Laundering Act (PMLA) takes the total seized assets in this case to over ₹10,000 crore. This is after earlier seizures of over ₹7,800 crore since October. The attached assets include seven properties each from Reliance Infrastructure Limited, two from Reliance Power Limited, and nine from Reliance Value Service Private Limited.
Financial freeze
Fixed deposits and unquoted investments frozen
The ED has also frozen fixed deposits in the names of Reliance Value Service Private Limited, Reliance Venture Asset Management Private Limited, M/s Phi Management Solutions Private Limited, M/s Adhar Property Consultancy Pvt Ltd, and M/s Gamesa Investment Management Private Limited. Further unquoted investments by Reliance Venture Asset Management Private Limited and M/s Phi Management Solutions Private Limited have also been frozen as part of this investigation.
Investigation details
Probe initiated after CBI FIR alleging criminal conspiracy
The ED probe was launched following a CBI FIR accusing Ambani and his group companies of criminal conspiracy, cheating, and corruption in diverting public funds raised by RHFL and RCFL. Between 2017-2019, Yes Bank invested ₹2,965 crore in RHFL instruments and ₹2,045 crore in RCFL. By December 2019 these loans turned non-performing with ₹1,353.50 crore and ₹1,984 crore still outstanding, respectively.
Extended probe
ED's investigation extends to Reliance Communications Limited
The ED's investigation has also extended to Reliance Communications Limited (RCOM), where loans worth over ₹13,600 crore were allegedly siphoned off through shell entities and bill discounting. The agency has traced ₹12,600 crore routed to connected parties and ₹1,800 crore liquidated from fixed deposits/mutual funds for group benefit. Anil Ambani and his group companies are yet to comment publicly on these developments.