Loan ‘Fraud’: Enforcement Directorate Summons Anil Ambani for Questioning on August 5

New Delhi: In a significant development, the Enforcement Directorate (ED) has summoned industrialist Anil Ambani, chairman of the Reliance Group, for questioning in connection with a large-scale financial scam. The case involves an alleged bank loan fraud and money laundering worth nearly ₹17,000 crore. Ambani has been asked to appear before the ED at its headquarters in New Delhi on August 5.

This action follows recent raids conducted by the ED at over 35 locations in Mumbai linked to the Reliance Group. The raids were carried out under the Prevention of Money Laundering Act (PMLA), targeting 50 companies and 25 individuals associated with the group. During these raids, the investigative agency seized several key documents and computer hardware.

The Allegations: What is the Case About?

The ED’s investigation is primarily focused on alleged irregularities in loans worth crores given by Yes Bank to Anil Ambani’s companies between 2017 and 2019. It is suspected that these funds were misused and diverted to shell companies and other firms within the group. Reports suggest that the investigation has also revealed that financial benefits were provided to Yes Bank’s promoters just before the loan approvals. The ED believes this was a pre-planned nexus of loans and kickbacks.

SEBI Uncovers Irregularities

In a separate but related development, the Securities and Exchange Board of India (SEBI) has also submitted its investigation report to the ED and other agencies. The SEBI report alleges that Reliance Infrastructure diverted approximately ₹10,000 crore through an “intercorporate deposit” to a non-declared related party company, “CLE Private Limited.” SEBI claims that the company failed to disclose these transactions accurately in its financial statements, misleading investors and public institutions.

Reliance Group’s Response

Following the ED’s actions, both Reliance Power and Reliance Infrastructure informed the stock exchanges that they were aware of the developments. However, the companies have claimed that the action has not impacted their business, financial position, or shareholders. A Reliance Group official has also refuted SEBI’s allegations, stating that Reliance Infra had already made public disclosures on the matter and that the claim of a ₹10,000 crore diversion is incorrect.

Anil Ambani, once among the world’s wealthiest individuals, has faced significant financial crises in recent years. Several of his key companies, such as Reliance Capital and Reliance Communications, have gone through insolvency proceedings. This is not the first time his companies have been accused of financial fraud. In November 2020, the State Bank of India also declared Reliance Communications and Ambani’s accounts as “fraud” and filed a complaint with the CBI, although it was later withdrawn following a Delhi High Court order.

Anil Ambani’s appearance before the ED on August 5 is expected to bring to light more details in this high-profile case. The ED believes this was a well-thought-out conspiracy to defraud banks, shareholders, and investors, and questioning him is crucial to getting to the bottom of it.