Anil Ambani's Multi-Crore Fraud Case: What Probe Agency May Ask Him Today

Reliance Group chairman Anil Ambani is being questioned at the probe agency Enforcement Directorate's office in New Delhi today in connection with money laundering charges linked to alleged bank loan frauds worth Rs 17,000 crore. The probe agency issued the summons to Mr Ambani after three days of scouring through the records of 50 companies and interviewing over 25 people.

The summons to appear before the probe agency was issued on August 1.

According to sources, Mr Ambani is not allowed to have a lawyer present with him during the questioning - which will be recorded on camera.

Here is the list of questions that the probe agency may be asking Mr Ambani today:

1. Which companies took loans in the last 10 years?
2. What was the financial condition of the companies?
3. Were the loans used for sanctioned purposes?
4. Did the companies furnish correct information?
5. Were loans diverted to shell companies?
6. Did you default on loans deliberately?
7. Were fraud bills circulated by your companies?
8. Did banks or any other organisation file audit reports?
9. Were you part of any conspiracy?
10. Did you influence people to be part of the fraud?
11. Transactions were made with which foreign companies?
12. Did you bribe any government official?
13. Were funds transferred after the NSA was declared?
14. Were funds transferred to political parties?
15. Why was a fraudulent bank guarantee given?
16. How were loans disbursed before approval?
17. Why did you pay bank officials after loan disbursal?

Anil Ambani and the multi-crore fraud

The action against Mr Ambani pertains to alleged financial irregularities and collective loan "diversion" pegged at more than Rs 17,000 crore by his multiple group companies, including Reliance Infrastructure (R Infra). The first allegation concerns the "illegal" loan diversion of around Rs 3,000 crore, given by the Yes Bank to Mr Ambani's group companies between 2017 and 2019.

The second allegation includes a similar fraud - but much larger - of over Rs 14,000 crore, allegedly committed by Reliance Communications.

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'. According to sources, 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'.

Following this, the probe agency launched raids on July 24 as part of the alleged bank loan fraud-linked money laundering case, apart from multiple other allegations of financial irregularities with crores of rupees by certain companies. The searches, conducted under provisions of the Prevention of Money Laundering Act (PMLA), were held in Delhi and Mumbai for at least three days.

The first arrest in the case was made last week. Partha Sarathi Biswal, the managing director of Biswal Tradelink Pvt Ltd, was arrested on August 1 under the Prevention of Money Laundering Act (PMLA), 2002, for submitting fake guarantees worth Rs 68.2 crore, sources said. These guarantees, they said, were arranged on behalf of Reliance Power.