More Action Against Anil Ambani Group, Knowledge City Land Among Assets Seized

More than 132 acres of land belonging to Dhirubhai Ambani Knowledge City in Navi Mumbai, Maharashtra, valued at Rs 4,462.81 crore, has been provisionally attached by the Directorate of Enforcement in strong action against the Anil Dhirubhai Ambani Group. Earlier today, the central agency had also attached a family residence in Mumbai's posh Pali Hill, the Reliance Centre in Delhi and properties in at least eight cities in connection with an ongoing investigation into the diversion and laundering of public funds raised by Reliance Home Finance Limited and Reliance Commercial Finance Limited.

In a regulatory filing, R-Infra said there has been no impact on the business operations, shareholders, employees or any other stakeholders of the company. Anil Ambani is not on the Board of Reliance Infrastructure Limited for more than 3.5 years, it said.

The fresh attachment has been made under the provisions of the Prevention of Money Laundering Act in connection with the bank fraud cases of Reliance Communications Ltd. or RCOM, the ED said in a statement.

With the latest move of the ED, the cumulative value of attached properties linked to Reliance Group companies now stands at over Rs 7,500 crore. 

The earlier attachments by the ED included 42 properties worth over Rs 3,083 crore connected to RCOM, Reliance Commercial Finance Ltd., and Reliance Home Finance Ltd.

The investigation stems from a case filed by the Central Bureau of Investigation under Sections 120-B, 406, and 420 of the Indian Penal Code and sections 13(1)(d) and 13(2) of the Prevention of Corruption Act, against RCOM, Anil Ambani, and others.

According to the ED, between 2010 and 2012, RCOM and its group entities availed loans from domestic and foreign lenders amounting to Rs 40,185 crore, out of which five banks later declared the accounts as fraudulent.

The probe revealed that funds borrowed by one entity were allegedly diverted to repay loans of other entities, routed to related parties, or invested in mutual funds-violating the terms of the loan sanctions.

The agency found that over Rs 13,600 crore was diverted for evergreening loans, Rs 12,600 crore was moved to connected parties, and Rs 1,800 crore was invested in fixed deposits and mutual funds before being rerouted to group entities.

The ED has also detected misuse of bill discounting and siphoning of funds abroad through outward remittances.

The ED said it remains committed to pursuing financial offenders and ensuring the restitution of proceeds of crime to rightful claimants. Further investigation is in progress.