Probe Agency ED Attaches Rs 1,120 Crore Assets Linked To Anil Ambani's Firms

The Enforcement Directorate (ED) has attached assets worth Rs 1,120 crore belonging to Reliance Anil Ambani Group entities in connection with the alleged bank fraud cases involving Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), and Yes Bank.

The attached assets include 18 properties, fixed deposits, bank balances, and unquoted investments. Among the properties under attachment are seven of Reliance Infrastructure Limited, two of Reliance Power Limited, and nine properties owned by Reliance Value Services Pvt Ltd.

Additionally, fixed deposits and investments linked to Reliance Value Services Pvt Ltd, Reliance Venture Asset Management Pvt Ltd, Phi Management Solutions Pvt Ltd, Adhar Property Consultancy Pvt Ltd, and Gamesa Investment Management Pvt Ltd have been brought under the ED scanner.

Before this action, the agency had already attached assets worth Rs 8,997 crore in earlier fraud cases relating to Reliance Communications Ltd, RCFL, and RHFL. With the latest move, total attachments against the group have now climbed to Rs 10,117 crore.

Complex Fund Diversion Uncovered

According to the ED, the financial probe has exposed fraudulent diversion of public money by multiple Reliance ADA Group companies including RCOM, RHFL, RCFL, Reliance Infrastructure Ltd, and Reliance Power Ltd.

Between 2017 and 2019, Yes Bank made substantial investments of Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL instruments. These later turned into non-performing assets, with outstanding dues of Rs 1,353.50 crore (RHFL) and Rs 1,984 crore (RCFL).

The investigation revealed that more than Rs 11,000 crore of public funds reached the group through a circuitous route. Since Reliance Nippon Mutual Fund was barred under SEBI's conflict-of-interest rules from directly supporting Anil Ambani Group finance companies, the funds were indirectly funneled via Yes Bank, the agency noted.

Multiple Banks Flag Fraud, Loans Misused

The ED is also probing allegations based on a CBI FIR claiming that RCOM and group companies misused loans worth Rs 40,185 crore availed from Indian and foreign lenders between 2010 and 2012.

At least nine banks have declared these accounts fraudulent.

The ED's findings indicate that over Rs 13,600 crore was used for evergreening loan repayments, over Rs 12,600 crore was diverted to related entities, around Rs 1,800 crore was invested in FDs/MFs and later rerouted for internal funding, funds siphoned overseas via outward remittances, and large-scale misuse of bill discounting mechanisms to funnel money.

The agency reiterated its commitment to recovering proceeds of crime and ensuring accountability in major financial frauds.

Further investigation is underway.