ED summons Tina Ambani in money laundering case
What's the story
The Enforcement Directorate (ED) has summoned Tina Ambani, wife of Reliance Group Chairman Anil Ambani, for questioning in a money laundering case. The agency had asked her to appear yesterday, but she didn't show up. Now, according to officials, a fresh summons will be issued soon. The questioning is related to a financial trail linked with the purchase of a luxury condo in Manhattan, New York.
Case details
Former RCOM president arrested
The ED has also arrested former Reliance Communications (RCOM) President Punit Garg in connection with this case. The agency recently set up a Special Investigation Team (SIT) to look into several alleged bank frauds and related financial irregularities against the Anil Dhirubhai Ambani Group (ADAG). This was done on the directions of the Supreme Court.
Asset seizure
Properties worth ₹1,885cr attached
In January, the ED provisionally attached properties of around ₹1,885 crore linked to ADAG. This includes bank balance, receivables, shareholding in "unquoted investments," and immovable assets. The total amount of attachment in alleged bank fraud cases against RCOM, Reliance Commercial Finance Limited (RCFL), and Reliance Home Finance Limited (RHFL) now stands at around ₹12,000 crore.
Fraud charges
Allegations of fraudulent diversion of public money
The ED has accused several Reliance Anil Ambani group firms, including RCOM, RHFL, RCFL, Reliance Infrastructure, and Reliance Power Limited, of fraudulent diversion of public money. It is alleged that Yes Bank invested ₹2,965 crore in RHFL instruments and ₹2,045 crore in RCFL instruments between 2017-19. By December 2019, these investments turned non-performing with an outstanding amount of ₹1,353.50 crore for RHFL and ₹1,984 crore for RCFL.
Fund routing
SEBI regulations violated?
The ED has also alleged that under SEBI regulations, Reliance Nippon Mutual Fund could not invest/divert funds directly in Anil Ambani group finance companies due to conflict-of-interest rules. It is alleged that public money in mutual fund schemes was routed indirectly by them through Yes Bank's exposures. This way, public funds reached Ambani group companies through a circuitous route.