Reliance: Due to FEMA violations, the ED seizes 13 of Anil Ambani’s Infra’s bank accounts

Reliance: In relation to a FEMA probe against Anil Ambani, the Enforcement Directorate (ED) has blocked over a dozen of Reliance Infrastructure’s bank accounts. These accounts contained around Rs 55.82 crore. Through its Special Purpose Vehicles (SPVs), Reliance Infrastructure Ltd. embezzled public cash from NHAI-awarded highway building contracts. Money was transferred to Mumbai shell firms under the pretense of fraudulent subcontracting agreements. Using fictitious directors at certain Mumbai bank branches, these shell companies were established in a coordinated fashion.

Anil Ambani was called for interrogation by the ED last month, but he failed to show up. According to his spokeswoman, the JR Toll Road project is finished and has been under NHAI’s control since 2021. The transaction was also wholly domestic and did not include any foreign currency transactions.

The ED claims that money was transferred to fictitious businesses in Mumbai that were established using a unique system with dummy directors. A network of shell corporations was then used to transfer the funds to the United Arab Emirates. Although no items or paperwork were received, the transactions were shown as payments for the importation of polished and unpolished diamonds. The UAE corporations in question have bank accounts in Hong Kong as well as the UAE.

Investigators discovered that people connected to international money laundering controlled these businesses. Over Rs 600 crore was laundered by the shell corporations that were employed in the transactions.

Due to the alleged misappropriation of project funding, the SPV had financial difficulties and its bank debts became non-performing assets (NPAs). Lenders suffered significant losses as a consequence, and the public’s financial interests were at danger. The stock market was informed by Reliance Infrastructure that it has received an ED notice freezing bank accounts totaling Rs 77.86 crore due to suspected FEMA breaches.