13 Accounts, With Rs 55 Crore, Of Reliance Infra Seized In Laundering Case

In a major action against suspected foreign exchange violations, the Directorate of Enforcement (ED), Special Task Force at its Headquarters, has seized assets worth Rs 54.82 crore belonging to Reliance Infrastructure Limited (R-Infra).

The seizure includes 13 bank accounts of the company, carried out under Section 37A of the Foreign Exchange Management Act (FEMA), 1999.

According to the ED, R-Infra, through its Special Purpose Vehicles (SPVs), allegedly siphoned funds designated for National Highways Authority of India (NHAI) road construction projects. These funds were funnelled into Mumbai-based shell companies in the name of fake sub-contracting work. The entities were reportedly formed using dummy directors and operated through specific bank branches to avoid detection.

The money was then layered across multiple shell entities before being transferred overseas to the United Arab Emirates (UAE), purportedly as payment for import of polished and unpolished diamonds - without any actual goods being delivered or legitimate documentation provided. The UAE firms involved maintained bank accounts in both UAE and Hong Kong, and were found linked to individuals involved in illegal international hawala operations.

Investigators have also uncovered that the shell companies used in this scheme are associated with hawala transactions worth over Rs 600 crore.

The financial probe agency has invoked provisions of Section 4 of FEMA for alleged contraventions involving unauthorized foreign remittances and diversion of public funds.

The ED said that the diversion of funds caused severe cash-flow problems in the SPVs, leading to bank loans turning into Non-Performing Assets (NPAs). This resulted in significant losses to lenders and compromised public infrastructure interests.

Further investigation into the case is currently underway.