Enforcement Directorate Attaches 40 Properties Worth Rs.3,000 Crore in Reliance Group Money Laundering Probe

Strategic Insights -

The Enforcement Directorate (ED) has attached 40 properties worth Rs.3,000 crore, including the Pali Hill residence of the Ambani family in Mumbai, in connection with its money laundering probe against the Anil Ambani-led Reliance Group. The probe pertains to diversion and laundering of public funds raised by Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) through investments by Yes Bank. The ED investigation found that direct investment by the erstwhile Reliance Nippon Mutual Fund into Anil Ambani Group financial companies was not legally possible, resulting in funds being routed indirectly through Yes Bank exposures.

Key Takeaways:

  • The ED has attached 40 properties worth Rs.3,000 crore, including the Pali Hill residence of the Ambani family in Mumbai.
  • The properties are located across Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, Chennai, and East Godavari.
  • The aggregate value of attachments is Rs.3,084 crore.
  • The probe pertains to diversion and laundering of public funds raised by Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL) through investments by Yes Bank.
  • The ED investigation found that direct investment by the erstwhile Reliance Nippon Mutual Fund into Anil Ambani Group financial companies was not legally possible, resulting in funds being routed indirectly through Yes Bank exposures.
  • The ED has intensified probe in Reliance Communications Ltd. (RCOM) and related companies loan fraud, finding diversion of over Rs.13,600 crore.
  • The agency officials said they have also detected huge misuse of bill discounting for the purpose of funneling funds to connected parties.

Statistics:

  • 40 properties worth a total of Rs.3,000 crore have been attached by the Enforcement Directorate.
  • The aggregate value of attachments is Rs.3,084 crore.
  • Rs.2,965 crore was invested by Yes Bank in RHFL instruments and Rs.2,045 crore in RCFL instruments.
  • Rs.1,353.50 crore was outstanding for RHFL and Rs.1,984 crore for RCFL as of December 2019.
  • Over Rs.13,600 crore was diverted by Reliance Communications Ltd. (RCOM) and related companies.
  • Over Rs.12,600 crore was diverted to connected parties, and over Rs.1,800 crore was invested in FDs/MFs.

Sources:

  • The Economic Times, [https://economictimes.indiatimes.com](https://economictimes.indiatimes.com)
  • Hindustan Times, [https://www.hindustantimes.com](https://www.hindustantimes.com)