ED Raids Anil Ambani Group Companies in Bank Fraud Case
More than 35 premises in Mumbai and Delhi of 50 companies and about 25 persons are being searched under the PMLA
The operation comes just days after the State Bank of India officially designated Reliance Communications and its promoter-director Anil Ambani as fraudulent entities.
According to reports, the ED has discovered that Yes Bank promoters received funds in their ventures just prior to the loan disbursement. The federal agency is examining the connection between these alleged payments and the loan approval.
The operation covered 35 premises in Mumbai, involved 50 companies, and targeted over 25 individuals connected to the case.
The investigation into money laundering is based on two separate FIRs filed by CBI and findings from the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA) and Bank of Baroda.
The agency is also investigating alleged serious breaches in Yes Bank's loan approvals to Anil Ambani Group companies, including accusations of backdated credit approval memorandums (CAMs) and investments proposed without proper credit analysis, violating the
bank's credit policies.
The entities involved are suspected of redirecting loans to various promoter group companies and shell organisations. The investigation
focuses on several irregularities, including loans granted to financially weak entities, insufficient loan documentation and due
diligence, and companies sharing identical addresses and directors, loans onward lent on same date, loans disbursed on same date as date of application, loans disbursed prior to sanction, misrepresentation of financials said reports.
These reports suggest a systematic approach to misappropriate public funds through defrauding banks, shareholders, investors and other public institutions.
The ED investigation is also understood to incorporate a SEBI report concerning Reliance Home Finance Limited (RHFL). The market
regulator's findings show RHFL's corporate loans increased from Rs 3,742.60 crore in FY 2017-18 to Rs 8,670.80 crore in FY 2018-19.
In reaction to the raids, Anil Ambani-owned Reliance Power and Reliance Infrastructure said that recent ED raids on properties linked
to Ambani will have no bearing on their business operations, financial performance. In separate regulatory filings, both companies clarified that the developments reported in the media do not impact day-to-day functioning or future outlook.
The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance
Home Finance Limited (RHFL), which are over 10 years old," Reliance Infrastructure said in its filing.
Both Reliance Infrastructure and Reliance Power stated that they have no business or financial linkage with RCOM or RHFL. The group further stated that RCOM has been undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, for over six years.
RHFL, meanwhile, has been fully resolved pursuant to a judgment by the Hon’ble Supreme Court of India. Similar allegations, as reported in the media, are sub-judice and currently pending before the Hon’ble Securities Appellate Tribunal, as per publicly available information,the statement said."Mr. Anil D. Ambani is not on the Board of Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Infrastructure," the statement said.
