New Delhi, Dec 5 (UNI) The Enforcement Directorate (ED) on Friday said that it has attached over 18 properties, fixed deposits, bank balances, and shareholdings in unquoted investments of the Reliance Anil Ambani Group worth Rs 1,120 crore in connection with the Reliance Home Finance Limited, Reliance Commercial Finance Limited, and Yes Bank fraud case.
The official said that the attached assets include seven properties of Reliance Infrastructure Limited, two properties of Reliance Power Limited, nine properties of Reliance Value Service Private Limited, Fixed Deposits in the name of Reliance Value Service Private Limited, Reliance Venture Asset Management Private Limited, Phi Management Solutions Private Limited , Adhar Property Consultancy Pvt Ltd:, Gamesa Investment Management Private Limited and Further Investments made in Unquoted Investment by Reliance Venture Asset Management Private Limited and Phi Management Solutions Private Limited, were also attached.
Earlier, the ED had attached properties worth over Rs 8,997 crore in the bank fraud cases involving Reliance Communications Ltd. (RCOM), Reliance Commercial Finance Ltd., and Reliance Home Finance Ltd. This brings the cumulative group attachment to Rs 10,117 crore.
“The ED has detected fraudulent diversion of public money by various Reliance Anil Ambani group companies including Reliance Communications Ltd, Reliance Home Finance Ltd (RHFL), Reliance Commercial Finance Ltd (RCFL), Reliance Infrastructure Ltd (RIL) & Reliance Power Ltd (RHFL).
During 2017–2019, Yes Bank invested Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL instruments. By December 2019, these became non-performing investments. The outstanding was Rs 1,353.50 crore for RHFL and Rs 1,984 crore for RCFL. ED’s investigation in the case of RHFL and RCFL reveals that RHFL and RCFL received public funds of more than Rs 11,000 crore,” said the official.
The official said that before Yes Bank invested this money in Reliance Anil Ambani group companies, Yes Bank had received huge funds from the erstwhile Reliance Nippon Mutual Fund. As per SEBI regulations, Reliance Nippon Mutual Fund could not invest/divert funds directly in Anil Ambani group finance companies due to conflict-of-interest rules. Therefore, public money in mutual fund schemes was routed indirectly by them. The path ran through Yes Bank’s exposures. The public funds reached Anil Ambani group companies through circuitous route
“The ED has also initiated an investigation on the basis of FIR registered by CBI under various Sections of Indian Penal Code, 1860, and the Prevention of Corruption Act, 1989 against RCOM, Anil Ambani and others. RCOM and its group companies availed loans from domestic and foreign lenders from the period of 2010-2012 onwards, of which a total amount of Rs. 40,185 Crore is outstanding. 9 banks have declared the loan accounts of the Group as fraud,” said the official.
ED official said that investigation revealed that loans taken by one entity from one bank were utilized for repayment of loans taken by other entities from other banks, transfer to related parties, and investments in mutual funds, which was in contravention to the terms and conditions of the sanction letter of the loans.
” In particular, RCOM and its group companies diverted over Rs. 13,600 Crore for evergreening of loans; over Rs. 12,600 Crore was diverted to connected parties and over Rs. 1,800 Crore was invested in FDs/MFs etc., which was substantially liquidated for rerouting to group entities. Huge misuse of bill discounting for the purpose of funneling funds to connected parties has also been detected by ED,” the official said.
Certain loans were siphoned off outside India through foreign outward remittances.
The ED is actively pursuing the perpetrators of these financial crimes and remains committed to restituting the proceeds of crime to their rightful claimants. Further investigations are ongoing.Assets attached include Reliance Centre, Ballard Estate; Commercial Office Building Of Reliance Infrastruture Limited Of Chakala Industrial Area (MIDC), Andheri East, Mumbai; residential properties of Reliance Infrastruture Limited at Santacruz; guest house of Reliance Infrastruture Limited at Santacruz, 231 residential Plots in Chennai belonging to Reliance Value Services Private Limited In Chennai and seven residential flats in Chennai belonging to Reliance Value Services Private Limited In Panvel.
Reliance Anil Ambani Group: Cumulative asset attachments by ED reach Rs 10,117 cr
