Anil Ambani is accused of a ₹17,000 crore bank loan fraud. The ED has initiated an investigation, collecting documents from several banks and companies. The investigation has now been intensified.
Anil Ambani ED Case: The Enforcement Directorate (ED) has initiated questioning of Anil Ambani, Chairman of Reliance Group, in connection with the ₹17,000 crore bank loan fraud case. The interrogation is taking place at the ED office in New Delhi. Anil Ambani arrived in Delhi from Mumbai on Tuesday morning and appeared for questioning.
How the Investigation Started
The ED received information during its initial investigation about illegal loan transfers of ₹3,000 crore from Yes Bank, which were made between 2017 and 2019. Subsequently, the investigating agency also uncovered a loan fraud of ₹14,000 crore related to Reliance Communications. Combining both cases, a total loan fraud of ₹17,000 crore is now under investigation.
ED Raids and Seizures
Starting from July 24, the ED conducted raids at 35 locations in Delhi and Mumbai for three days. These locations were linked to 50 companies and 25 individuals. During the raids, several electronic devices, documents, and hard drives were seized. Actions were also taken against officials and directors associated with Anil Ambani's companies.
Information Requested from Banks
The ED has sent letters to more than 12 public and private banks, seeking information on loan transactions and approval processes. These banks include SBI, Axis Bank, ICICI Bank, HDFC Bank, UCO Bank, and Punjab & Sind Bank. The focus of the investigation is to understand the circumstances under which such large loans were approved for Anil Ambani's companies.
ED's First Arrest
The ED made its first arrest in this case on August 1. Parthasarathi Biswal, MD of Biswal Trade Link Private Limited, was arrested for allegedly depositing a fake bank guarantee of ₹68.2 crore. This guarantee was purportedly given on behalf of Reliance Power.
ED Became Active After CBI Action
The CBI had initially registered two FIRs in this matter. Based on these FIRs, the ED registered a case under the Money Laundering Act. The allegation is that there were serious irregularities in the loans given by Yes Bank to Anil Ambani's companies, and some of these loans were issued in the name of shell companies.
Disclosure of Irregularities
The ED's preliminary investigation has revealed several irregularities, such as:
- Issuing loans without proper verification of financial status
- Same director and address in the loan-taking companies
- Lack of documentation
- Giving new loans to repay old debts
- Transferring funds to shell companies
SEBI's (Securities and Exchange Board of India) report has also provided information on serious irregularities in Reliance Home Finance Limited. The corporate loan portfolio, which was ₹3,742 crore in FY 2017-18, increased to ₹8,670 crore in 2018-19.
Impact on the Stock Market
Following the ED's action, the shares of Anil Ambani's companies have fallen sharply. Lower circuits have been triggered in the shares of both Reliance Power and Reliance Infrastructure. In the last five days, Reliance Power's shares have fallen by up to 11%, while Reliance Infrastructure's shares have seen a decline of 10%.
Reliance Group's Response
Reliance Power and Reliance Infrastructure informed the stock exchange on July 26 that the ED's actions have not had any impact on their business operations, financial performance, or stakeholders. They also stated that they are fully cooperating with the investigation.
Role of Other Regulators
The National Housing Bank (NHB), SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda have submitted their findings to the ED. This has further increased the seriousness of the case.
Lookout Notice Against Anil Ambani
The ED has issued a lookout circular against Anil Ambani, preventing him from leaving the country. Earlier, SBI had also declared Reliance Communications and Anil Ambani as fraud accounts.
