The Enforcement Directorate (ED) recently conducted searches at several locations linked to industrialist Anil Ambani in a money laundering probe, prompting Reliance Power and Reliance Infrastructure to state these actions will have no impact on their operations.
ED Raids Target Anil Ambani-Linked Properties
On Thursday, the Enforcement Directorate (ED) carried out extensive searches at more than 35 premises in Mumbai. These locations are reportedly connected to Anil Ambani as part of an ongoing investigation into alleged money laundering activities involving companies associated with the Reliance Anil Dhirubhai Ambani Group (RAAGA).
The central agency confirmed that their probe extends to fifty companies and twenty-five individuals. This investigation stems from two First Information Reports (FIRs) previously registered by the Central Bureau of Investigation (CBI) and other relevant agencies.
Reliance Power & Infra Clarify Stance
Following the news of the searches, both Reliance Power Ltd and Reliance Infrastructure Ltd issued separate statements. They emphasized that the ED’s actions would have “absolutely no impact” on their current business operations, financial performance, shareholders, or employees.
The companies clarified that media reports seem to relate to allegations concerning transactions of Reliance Communications Ltd (RCOM) or Reliance Home Finance Ltd (RHFL), which are more than a decade old. Both Reliance Power and Reliance Infrastructure asserted they are separate and independent listed entities, with no business or financial ties to RCOM or RHFL.
Why the ED Is Investigating
The Enforcement Directorate’s investigation is reportedly delving into potential links between bribes and loans. Authorities suspect that certain bank officials, including promoters of Yes Bank Ltd, may have received bribes related to financial dealings.
The ED’s probe has allegedly uncovered significant irregularities in Yes Bank’s loan approvals to RAAGA companies. These alleged violations include backdated credit approval memorandums and investments proposed without proper due diligence or credit analysis, which would be in breach of the bank’s credit policies.
It’s worth noting that in August of the previous year, the Securities and Exchange Board of India (SEBI) imposed a five-year ban on Anil Ambani from the stock market and levied a Rs 25 crore fine. This action was taken over alleged fund diversion from Reliance Home Finance (RHFL), a former subsidiary of Reliance Capital.
No Direct Impact on Current Operations, Companies Assert
Reliance Communications (RCOM) has been undergoing a Corporate Insolvency Resolution Process (CIRP) for over six years under the Insolvency and Bankruptcy Code, 2016. Similarly, Reliance Home Finance (RHFL) has been fully resolved following a judgment by the Supreme Court of India.
Crucially, both Reliance Power and Reliance Infrastructure stated that Anil Ambani is not a member of their respective Boards. Therefore, they maintain that any actions taken against RCOM or RHFL have no bearing or impact on the governance, management, or operations of Reliance Power and Reliance Infrastructure.
- The ED conducted over 35 searches linked to Anil Ambani in a money laundering case.
- Reliance Power and Reliance Infrastructure stated these actions will have “no impact” on their businesses.
- The companies claim no business or financial ties to the older issues of Reliance Communications or Reliance Home Finance.
- The ED probe relates to alleged bribe-loan links and violations in Yes Bank loan approvals to RAAGA companies.
- Anil Ambani is not on the Boards of Reliance Power or Reliance Infrastructure.
This ongoing investigation highlights the continued scrutiny of past financial dealings involving entities associated with the Reliance Group.
