Reliance Group Chairman Anil Ambani was questioned by the Enforcement Directorate Tuesday morning on money laundering charges linked to alleged bank loan frauds worth Rs 17,000 crore.
The probe agency turned to Mr Ambani after three days of poring through the records of 50 companies across 35 locations, and interviewing 25 people. Sources told NDTV a 'large number of incriminating documents and digital evidence' was recovered, prompting his summons.
The agency has written to a dozen banks seeking details of due diligence followed for loans sanctioned to Mr Ambani's companies, including Reliance Housing Finance and Reliance Communications. Details have been sought from the State Bank of India and private banks like Axis, ICICI, and HDFC.
Specifically, the agency has sought details on the process followed for loan clearances, the timeline of default and recovery action that followed on such accounts, sources told NDTV.
READ | In Fresh Trouble For Anil Ambani, Probe Agency ED Writes To Multiple Banks
Overall, the Enforcement Directorate has claimed a "calculated scheme" to defraud banks, investors, shareholders, and public institutions by misusing loan funds, sources said.
READ | Anil Ambani ED Questioning: No Lawyer, Session To Be Recorded, Say Sources
Last week the agency made its first arrest in the case; Partha Sarathi Biswal, the Managing Director of Biswal Tradelink Pvt Ltd, was arrested for filing Rs 68 crore in fake guarantees.
Anil Ambani And Rs 17,000 crore Loan Fraud Case
A preliminary investigation revealed that Rs 3,000 crore in loans from Yes Bank (dispersed between 2017 and 2019) were wrongfully diverted. A similar fraud - but much larger, i.e., over Rs 14,000 crore - was allegedly committed by Reliance Communications too, officials said.
The agency has alleged an illegal quid pro quo arrangement - wherein promoters of Yes Bank allegedly received payments in privately-held concerns just before sanctioning loans.
Anil Ambani is the brother of Reliance Industries Limited Chairman Mukesh Ambani (File).
The investigation also flagged instances of loans being issued to companies with poor or unverified financial sources, use of common directors and addresses, lack of essential documentation, routing of funds to shell entities and instances of 'loan evergreening', i.e., using fresh loans to repay older ones.
READ | Loan Transferred Even Before Approval In Anil Ambani Case: Sources
Sources said the initial inquiry shows some loans were approved and released on the same day the application was made, while others were transferred even before 'approval'.
These 'loans' include those given to Reliance Housing Finance Limited, or RHFL. In fact, the firm's corporate loan portfolio jumped from Rs 3,742 crore in FY18 to Rs 8,670 crore in FY19.
Anil Ambani Loan Fraud Cases
Mr Ambani also faces possible charges over a second set of alleged loan frauds, this time worth Rs 14,000 crore and linked to what was his flagship firm, Reliance Communications, or RCom.
In June the SBI declared the RCom loan account a 'fraud' and said it would report Mr Ambani - which it has not yet done - to the CBI. The bank claimed it had identified fund diversion, irregular accounting, and book manipulation through related RCom entities.
READ | Insurance To Housing, Anil Ambani's Troubles Worth Thousands Of Crores
The SBI said there were 'deviations' in how these loans were utilised, and that these 'deviations' involved 'complex web of fund movements across multiple group entities'.
A law firm representing Mr Ambani responded to the State Bank's charge.
READ | Anil Ambani: From 6th Richest In World To 'Fraud' Tag By State Bank
The law firm said Mr Ambani had been 'shocked' to receive the ex-parte - i.e., an order passed without hearing both sides - of the Fraud Identification Committee.
RCom also faces allegations of committing a Rs 1,050-crore fraud, this time on Canara Bank.
Fake bank guarantees - including one offered by Partha Biswal - were used to take loans.
Once one of the world's richest men, Mr Ambani's one-time flourishing empire has crumbled under charges of frauds, fund diversions, forged guarantees, and defaults, in India and abroad.
That list of frauds and allegations include markets regulator SEBI ruling that Mr Ambani, with help from senior executives at Reliance Home Finance, siphoned off over Rs 5,000 crore by disguising them as loans to entities linked to him. He was fined Rs 25 crore and the company an additional Rs 6 lakh.
NDTV is now available on WhatsApp channels. Click on the link to get all the latest updates from NDTV on your chat.
Track Latest News Live on NDTV.com and get news updates from India and around the world
