Why ED filed fresh chargesheets against Anil Ambani group firms
What's the story
The Enforcement Directorate (ED) has filed chargesheets against two companies of the Reliance Anil Ambani Group (RAAG) in separate money laundering cases. The first prosecution complaint was filed against Reliance Infrastructure Limited and former Reliance Group executive Sateesh Seth, 70, before a special Prevention of Money Laundering Act (PMLA) court in Dwarka. Seth was arrested by the ED in June and is currently lodged in jail under judicial custody.
Additional charges
RCOM case involves supplementary chargesheet
The second case involves a supplementary chargesheet filed against Reliance Communications Limited (RCOM) and others.
The main chargesheet in this case was filed by the ED in March.
The prosecution complaint names RCOM, Reliance Telecom Limited (RTL), former RAAG executives Seth, Gautam Doshi, and Amitabh Jhunjhunwala, among others, as accused under PMLA provisions.
Fund misappropriation
Chargesheet against Reliance Infrastructure based on Mumbai Police FIR
The chargesheet against Reliance Infrastructure is based on a Mumbai Police Economic Offences Wing (EOW) FIR from February.
It alleged that shell companies were created and operated with forged documents and bank accounts to route funds under the cover of fictitious invoices in over-valued diamond exports.
The ED's investigation found an "organized scheme" to "divert" public funds from four NHAI-awarded toll-road projects.
Financial diversion
Money trail led from Reliance Infrastructure to shell entities
The ED alleged that around ₹187 crore was siphoned off between September and October 2010 through sham arrangements for fictitious sub-contracting work.
The money trail led from Reliance Infrastructure or its project-specific special purpose vehicles to construction contractors, and then to shell entities unrelated to road construction.
Documents were later created to show these transfers as legitimate project expenditure while funds were layered through shell entities and diamond traders.
Asset seizure
ED has attached assets worth ₹187cr
The ED has attached immovable assets and equity shares of Reliance Power Limited, held by Reliance Infrastructure, and land in the name of Ksheeraabd Constructions worth ₹187 crore.
The supplementary chargesheet stems from multiple CBI FIRs against RCOM, RTL and Reliance Infratel Limited over alleged diversion of fund-based and non-fund-based credit facilities.
The investigation found new credit facilities were fraudulently used to repay earlier domestic/foreign liabilities instead of their sanctioned end-use.