The Enforcement Directorate on Tuesday conducted searches in Maharashtra and Madhya Pradesh as part of a FEMA investigation being conducted against Anil Ambani Group company Reliance Infrastructure, official sources said.
At least six premises of some linked entities in Mumbai and Mhow in Indore were searched, they said.
The surprise action was part of a Foreign Exchange Management Act (FEMA) investigation being conducted against Reliance Infrastructure on charges of making some illegal remittances abroad, they said.
The company said in a statement that the ED action was in relation to a matter "dating back 15 years".
"In 2010, the company had awarded an EPC contract for the construction of the JR Toll Road (Jaipur-Ringus Highway) to Prakash Asphaltings & Toll Highways." "This was a domestic contract with no foreign exchange involved," it said in a statement.
The work was completed, and the company has no continuing connection or relationship with the said contractor. The toll road is with the NHAI for the last 4 years, Reliance Infra said.
The ED has already been investigating alleged financial irregularities and collective loan "diversion" pegged at more than Rs 17,000 crore by multiple group companies of Anil Ambani, including Reliance Infrastructure (R Infra), under the criminal provisions of the anti-money laundering law (Prevention of Money Laundering Act).
The agency action under the PMLA came on a SEBI report alleging that R Infra "diverted" funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company named CLE.
It was alleged that R Infra did not disclose CLE as its "related party" to avoid approvals from shareholders and audit panels.
The Reliance Group had earlier denied any wrongdoing and said in a statement that the allegation regarding the diversion of Rs 10,000 crore to an undisclosed party was a 10-year-old matter and the company had stated in its financial statements that its exposure was only around Rs 6,500 crore.
The company said the latest FEMA action has had "absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company."
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