ED Attaches Rs 1,120 Crore Assets in Major Fraud Investigation Against Anil Ambani's Reliance Group

The Enforcement Directorate (ED) has seized assets valued at Rs 1,120 crore belonging to various entities of the Reliance Anil Ambani Group in relation to alleged bank fraud cases involving Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), and Yes Bank.

These attached assets comprise 18 properties, fixed deposits, bank balances, and unquoted investments. The property portfolio includes seven properties owned by Reliance Infrastructure Limited, two by Reliance Power Limited, and nine by Reliance Value Services Pvt Ltd.

The ED has also placed under scrutiny fixed deposits and investments connected to multiple companies including Reliance Value Services Pvt Ltd, Reliance Venture Asset Management Pvt Ltd, Phi Management Solutions Pvt Ltd, Adhar Property Consultancy Pvt Ltd, and Gamesa Investment Management Pvt Ltd.

Prior to this enforcement action, the agency had already attached assets worth Rs 8,997 crore in previous fraud cases related to Reliance Communications Ltd, RCFL, and RHFL. With this latest attachment, the total value of seized assets from the group has reached Rs 10,117 crore.

The ED's investigation has uncovered elaborate schemes for fraudulent diversion of public funds involving multiple Reliance ADA Group companies, including RCOM, RHFL, RCFL, Reliance Infrastructure Ltd, and Reliance Power Ltd.

Between 2017 and 2019, Yes Bank made significant investments totaling Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL instruments. These investments subsequently deteriorated into non-performing assets, with outstanding dues amounting to Rs 1,353.50 crore from RHFL and Rs 1,984 crore from RCFL.

The financial probe revealed that over Rs 11,000 crore of public funds were channeled to the group through indirect routes. Since Reliance Nippon Mutual Fund was prohibited under SEBI's conflict-of-interest regulations from directly supporting Anil Ambani Group finance companies, the funds were instead routed through Yes Bank, according to the ED.

The investigation is also examining allegations based on a CBI FIR that claims RCOM and affiliated companies misappropriated loans worth Rs 40,185 crore obtained from Indian and foreign lenders between 2010 and 2012.

At least nine financial institutions have classified these accounts as fraudulent.

The ED's investigation indicates that over Rs 13,600 crore was used for evergreening loan repayments, more than Rs 12,600 crore was diverted to related entities, approximately Rs 1,800 crore was placed in FDs/MFs and subsequently redirected for internal funding, funds were siphoned overseas through outward remittances, and extensive misuse of bill discounting mechanisms occurred to channel funds.

The agency has reaffirmed its dedication to recovering proceeds of crime and ensuring accountability in major financial fraud cases.

The investigation continues to develop.