The Enforcement Directorate (ED) has intensified its crackdown on the Reliance Anil Ambani Group (RAAG), announcing the provisional attachment of assets valued at over ₹7,500 crore (approximately $853 million). This sweeping action, conducted under the Prevention of Money Laundering Act (PMLA), is part of an ongoing investigation into multiple alleged bank fraud and public fund diversion cases linked to the group’s companies.
🏛️ The Scale of the Seizure: Key Assets Attached
The ED has issued multiple provisional attachment orders, targeting prime properties across India. The total value now stands at approximately ₹7,545 crore, following two major tranches:
- Dhirubhai Ambani Knowledge City (DAKC) Land: The most significant seizure involves over 132 acres of land in the DAKC campus in Navi Mumbai, Maharashtra, valued at over ₹4,462 crore. This attachment is specifically linked to the alleged bank fraud involving Reliance Communications Ltd (RCOM).
- Initial Tranche: An earlier attachment order secured over 40 properties worth approximately ₹3,083 crore. These included:
- The Ambani family’s residence in Pali Hill, Mumbai.
- The Reliance Centre property in New Delhi.
- Other commercial and residential properties spread across major cities like Mumbai, Delhi, Noida, Pune, Hyderabad, and Chennai, belonging to entities like Reliance Infrastructure Ltd (RIL) and others.
The action is based on a First Information Report (FIR) registered by the Central Bureau of Investigation (CBI) against RCOM, Anil Ambani, and others. The ED’s stated goal is to secure the proceeds of crime and facilitate restitution to the victim banks.
🔍 Allegations of Fund Diversion and Evergreening
The ED’s investigation focuses on allegations of fraudulent diversion and siphoning of public funds raised by several group companies, including RCOM, Reliance Home Finance Ltd (RHFL), and Reliance Commercial Finance Ltd (RCFL).
The probe has highlighted a pattern of financial misconduct, alleging:
- Loan Evergreening: Over ₹13,600 crore was allegedly diverted for the “evergreening” of loans—using funds taken from one entity to repay the borrowings of another group company to prevent loan defaults from being declared.
- Routing to Connected Parties: Approximately ₹12,600 crore was reportedly funnelled to connected parties and used for purposes contrary to the sanctioned loan terms.
- Yes Bank Link: The ED and CBI probes have scrutinized significant investments made by Yes Bank, under its former leadership, into instruments of RHFL and RCFL between 2017 and 2019. These investments, totalling over ₹5,000 crore, later turned into non-performing investments (NPIs), causing substantial losses to the bank. The CBI’s chargesheet in the Yes Bank case alleges a criminal conspiracy between former Yes Bank officials and Anil Ambani, with funds allegedly routed in a quid pro quo arrangement.
- Procedural Lapses: The agency noted “intentional and consistent control failures” and serious procedural lapses in loan sanctioning and processing, which allegedly facilitated the misuse of funds.
The outstanding dues for RCOM and its group companies from domestic and foreign lenders are reported to be over ₹40,185 crore, with five banks having already declared the loan accounts as fraudulent.
🛡️ Group’s Response: Anil Ambani Not on Board
In response to the attachment, Reliance Infrastructure Ltd (R-Infra) issued a statement to the stock exchanges, clarifying its position:
- R-Infra confirmed that certain assets of the company have been provisionally attached by the ED.
- It stressed that the action has “no impact on the business operations, shareholders, employees or any other stakeholders” of Reliance Infrastructure Limited.
- The company also emphasized that “Anil D. Ambani is not on the Board of Reliance Infrastructure Limited for more than 3.5 years.”
This landmark action underscores the Indian government’s continuing focus on tracing the proceeds of financial crime and recovering assets for lenders. The ongoing investigation is expected to see further developments as the ED works to solidify the attachments and pursue the alleged perpetrators of the money laundering scheme.
