Money Laundering – Anil Ambani Skips ED Appearance in Ongoing Probe
Money Laundering – Industrialist Anil Ambani did not appear before the Enforcement Directorate (ED) on Friday despite being summoned for questioning in connection with a money laundering investigation. The development comes a day after he visited the agency’s headquarters in New Delhi to record his statement in the same case.
Previous Appearance Before Investigators
On Thursday, Ambani reached the ED office around 11 a.m. and provided his statement to officials examining alleged financial irregularities linked to companies of the Reliance Anil Ambani Group. He had earlier been asked to present himself for questioning regarding transactions under scrutiny.
The probe has intensified following the agency’s move to attach high-value properties associated with the businessman.
Property Attachments Under PMLA
The ED recently attached Ambani’s residential property ‘Abode’ located in Mumbai’s Pali Hill area. The property has been valued at Rs 3,716.83 crore and was provisionally seized under provisions of the Prevention of Money Laundering Act (PMLA), 2002. A portion of the same property worth Rs 473.17 crore had already been attached earlier.
With this latest action, the cumulative value of properties attached in cases linked to the group has crossed Rs 15,700 crore, according to agency officials.
Origin of the Investigation
The money laundering case originates from a First Information Report registered by the Central Bureau of Investigation. The FIR names Reliance Communications Ltd (RCOM), Anil Ambani and others under sections related to criminal conspiracy, breach of trust, cheating, and provisions of the Prevention of Corruption Act.
Investigators have stated that RCOM and its associated companies secured loans from domestic and overseas lenders between 2010 and 2012. The total outstanding dues from these borrowings are estimated at Rs 40,185 crore.
Loan Fraud Allegations and Bank Actions
The ED is examining alleged loan diversion involving more than Rs 14,000 crore linked to Reliance Communications. Minister of State for Finance Pankaj Chaudhary informed Parliament that the State Bank of India classified RCOM and its promoter as fraudulent accounts in line with Reserve Bank of India guidelines. The bank has reported the classification to the RBI and is preparing to lodge a complaint with the CBI.
In a separate allegation, Canara Bank has claimed that it was defrauded of over Rs 1,050 crore by the company.
Officials have also indicated that foreign bank accounts and overseas assets connected to the case are being reviewed as part of the broader financial investigation.
Investments and Related Party Transactions Under Scanner
Earlier findings by the agency pointed to an investment of Rs 2,850 crore by Reliance Mutual Fund in AT-1 bonds issued by YES Bank. These bonds were later written down, resulting in significant losses to investors. The CBI is also examining this matter.
Based on inputs from the Securities and Exchange Board of India, the ED has alleged that Reliance Infrastructure transferred substantial sums as inter-corporate deposits to group companies through an undisclosed related entity. According to investigators, this structure allegedly bypassed mandatory approvals from shareholders and audit committees.
Officials further stated that Reliance Infrastructure reportedly accepted a financial haircut of Rs 5,480 crore in one settlement, while receiving only Rs 4 crore in cash. The remaining Rs 6,499 crore was adjusted through assignment of assets and economic rights, mainly in certain power distribution companies that are currently non-operational. The agency has expressed concern over the recoverability of these amounts.
Land and Asset Seizures Expand
Last year, the ED’s Special Task Force attached more than 132 acres of land in Dhirubhai Ambani Knowledge City in Navi Mumbai, valued at Rs 4,462.81 crore. These attachments are part of the ongoing probe into bank fraud cases involving RCOM, Reliance Commercial Finance Ltd and Reliance Home Finance Ltd.
According to officials, loans raised by certain group entities were allegedly used to repay borrowings of other companies, routed to related parties, or placed in financial instruments contrary to loan conditions. The agency has claimed that over Rs 13,600 crore was used for loan evergreening, Rs 12,600 crore channelled to connected entities, and around Rs 1,800 crore invested in deposits and mutual funds before being redirected within the group.
Investigators have also reported suspected misuse of bill discounting facilities and overseas fund transfers.
The Enforcement Directorate has stated that it will continue its inquiry and pursue recovery of assets identified as proceeds of crime in accordance with the law.