Enforcement Directorate Attaches Properties Worth Over Rs 3,000 Crore in Money Laundering Probe Against Anil Ambani's Reliance Group

Strategic Insights -

The Enforcement Directorate has taken a significant step in its money laundering probe against Anil Ambani's Reliance group by attaching properties worth over Rs 3,000 crore. This move comes after multiple searches were conducted at Ambani's residence and group entities, including at his Mumbai residence, since July. The probe under the Prevention of Money Laundering Act (PMLA) is based on two FIRs registered by CBI against Ambani and his entities for alleged bank loan frauds.

Key Takeaways:

  • The Enforcement Directorate has attached properties worth over Rs 3,000 crore in connection with its money laundering probe against Anil Ambani's Reliance group.
  • The attached properties include Ambani's Pali Hill house in Bandra, Mumbai, and other flats, plots, and offices of Reliance Communication and Reliance Infrastructure Ltd across several cities.
  • The ED alleges that Ambani group entities indulged in diversion and rerouting of bank funds with an intention to siphon off the proceeds, with the funds ultimately landing in accounts of Reliance group companies.
  • The agency has found that Reliance Commu- nication diverted more than Rs 13,600 crore of funds, with over Rs 12,600 crore being diverted to associated group entities.
  • Reliance Home Finance Ltd and Reliance Commercial Finance Ltd are also accused of diverting and laundering public funds during 2017-19.
  • The ED is also probing Ambani's attempt to influence sale of assets of Reliance group through insolvency to own related entities.

Statistics:

  • Total value of properties attached: Rs 3,000 crore
  • Amount diverted by Reliance Communication: over Rs 13,600 crore
  • Amount diverted to associated group entities: over Rs 12,600 crore
  • Amount invested in fixed deposits and mutual funds: Rs 1,800 crore
  • Investments by Yes Bank in RHFL and RCFL: Rs 2,965 crore and Rs 2,045 crore, respectively
  • Total amount turned into NPAs by end of 2019: large outstandings

Sources:

  • "Reliance Centre, Ambani's office at Hotel Ranjit in the heart of Delhi, has been attached," - Enforcement Directorate
  • FIRs registered by CBI against Ambani and his entities for alleged bank loan frauds - CBI
  • "We have found regulatory violation by Reliance Nippon Mutual Fund, as funds collected from the public cannot be invested in own related companies," - Enforcement Directorate
  • Interviews with officials and documents reviewed by the agency - Enforcement Directorate