ED Summons Anil Ambani for Questioning in Rs 7,545 Crore Money Laundering Investigation

The Enforcement Directorate (ED) has issued another summons to Anil Ambani, Chairman of Reliance ADAG Group, requiring him to appear for questioning on November 14 regarding a money laundering investigation, according to sources familiar with the matter.

This summons follows the ED's recent provisional attachment of over 132 acres of land valued at Rs 4,462.81 crore in Dhirubhai Ambani Knowledge City, Navi Mumbai, under the Prevention of Money Laundering Act.

Previously, the ED had attached 42 properties worth more than Rs 3,083 crore in connection with bank fraud cases involving Reliance Communications Ltd. (RCOM), Reliance Commercial Finance Ltd., and Reliance Home Finance Ltd.

"The total attachment in these cases now exceeds Rs 7,545 crore. The ED remains committed to pursuing financial crime perpetrators and ensuring proceeds of crime are returned to rightful claimants," stated the agency.

The investigation originated from a CBI case filed under sections 120-B, 406, and 420 of the Indian Penal Code, 1860, and section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1989, against RCOM, Anil Ambani, and others.

Between 2010-2012 and thereafter, RCOM and its group companies obtained loans from domestic and foreign lenders, accumulating outstanding debt totaling Rs 40,185 crores. Five banks have classified these loan accounts as fraudulent.

The ED investigation has uncovered that loans taken by one entity from a particular bank were used to repay loans taken by other entities from different banks, transferred to related parties, and invested in mutual funds, violating the sanctioned loan terms and conditions.

Specifically, RCOM and its group companies diverted over Rs 13,600 crore for loan evergreening, channeled more than Rs 12,600 crore to connected parties, and invested approximately Rs 1,800 crore in fixed deposits and mutual funds, which were substantially liquidated and rerouted to group entities.

The ED has also detected extensive misuse of bill discounting to funnel funds to connected parties. Some loans were allegedly siphoned out of India through foreign outward remittances. The investigation continues, according to an ED statement.