Mumbai: The troubles for Reliance Group Chairman Anil Ambani have deepened, with the Enforcement Directorate (ED) tightening its investigation into an alleged Rs 17,000 crore loan fraud. After conducting raids at multiple locations linked to Ambani in Delhi and Mumbai, the central agency has now summoned him for questioning.
Anil Ambani Summoned On August 5 After Raids Last Week
Ambani has been directed to appear at the ED headquarters in Delhi on August 5 in connection with a probe under the Prevention of Money Laundering Act (PMLA). Last week, the ED had raided 35 locations associated with the Reliance Group in Mumbai, examining financial transactions of nearly 50 companies and 25 individuals.
Details On The Irregularities
According to a TV9 report, the investigation is reportedly connected to findings shared by the Securities and Exchange Board of India (SEBI), which discovered alleged irregularities involving Rs 10,000 crore in financial dealings by Reliance Infrastructure (R Infra). According to SEBI’s report, R Infra routed large inter-corporate deposits through a little-known entity called CLE Private Limited, identified as a related party. CLE, headquartered in Mumbai's Santacruz, is now under the scanner.
The report highlights that R Infra transferred substantial sums to CLE, despite it being controlled by individuals using Reliance ADA Group email domains and having directors and employees directly linked to Reliance. SEBI’s findings reveal that as of March 31, 2022, R Infra had invested Rs 8,302 crore in CLE through inter-corporate deposits, equity, and corporate guarantees. These investments accounted for 25–90 per cent of R Infra’s total assets between 2013 and 2023.
SEBI also stated that Anil Ambani, as Chairman, held over 40 per cent control in R Infra until March 2019, making him a key figure in the financial decisions. The regulator has flagged possible violations of disclosure norms and misrepresentation of financial relationships.
According to the report, in response, a person close to the Reliance Group dismissed the allegations, stating that the company had disclosed its position to SEBI back in February and that there was nothing new in the regulator’s report. They claimed R Infra’s actual exposure was Rs 6,500 crore, not Rs 10,000 crore and recovery efforts were already underway through arbitration monitored by a retired Supreme Court judge.
SEBI has referred the matter to the ED, the National Financial Reporting Authority (NFRA) and the Insolvency and Bankruptcy Board of India (IBBI) for further independent investigation.
