Reliance Group chairman Anil Ambani facing a second round of questioning by the Enforcement Directorate in Delhi regarding a Rs 40,000 crore loan fraud probe linked to Reliance Communications, following the attachment of his Mumbai property.
The Enforcement Directorate (ED) has intensified its scrutiny of Reliance Group chairman Anil Ambani, marking a critical juncture in the ongoing investigation into a massive financial discrepancy.
This development underscores the aggressive stance regulatory bodies are adopting towards corporate accountability and the recovery of non-performing assets. Ambani recently appeared before the Delhi office of the Enforcement Directorate for a second round of questioning in connection with a money laundering case.
This appearance occurred just a day after his prestigious Mumbai residence, valued at a staggering Rs 3,716 crore, was formally attached by the top financial crimes agency.
The core of the issue revolves around Reliance Communications Limited and an alleged loan fraud amounting to Rs 40,000 crore reported by various banks. The financial agency has been exceptionally meticulous in its approach, resulting in the total attachment of assets against Ambani and his associated group entities now exceeding Rs 15,700 crore.
The agency reported that the Special Task Force Headquarters has provisionally attached the Pali Hill residential property Abode of Anil Ambani, worth Rs 3,717 crore under the provisions of the Prevention of Money Laundering Act. Previously, the agency had already attached a portion of this same property to the extent of Rs 473 crore.
The comprehensive investigation delves deeply into the complex financial manoeuvres involving Ambani, his wife Tina Ambani, and various other associates and group entities. They had been summoned twice earlier this month but did not appear before the agency, which prompted extensive searches across multiple premises, including his Mumbai residences.
The agency clarified that RCOM and its group companies availed loans from domestic and foreign lenders, of which a total amount of Rs 40,185 crore is currently outstanding, inclusive of penalties. This staggering figure highlights the sheer magnitude of the financial exposure faced by the domestic and international lenders.
A critical aspect of the ongoing investigation focuses intently on the corporate restructuring undertaken by the Ambani family. The Enforcement Directorate revealed that the Pali Hill property was aggregated into the RiseE Trust, which operates as a private family trust for the members of the family.
The agency indicated that this strategic move was designed to make it appear as though Anil Ambani was not directly involved. According to the investigating body, the intended effect of this corporate restructuring was to ensure wealth preservation and resource generation by aggregation of the property in the RiseE trust and shield it from the personal liabilities of Anil Ambani in the form of personal guarantees extended by him to lender banks against the loans sanctioned to RCOM.
The regulatory authorities maintain that the property was intended to be beneficially used and owned by the family, rather than serving as crucial collateral for the distressed public banks left grappling with non-performing assets. The agency firmly reiterated that it is committed to safeguarding the financial system and protecting public funds by identifying and attaching assets involved in money laundering, with further investigations still actively in progress.
The ongoing proceedings are expected to set a formidable precedent for how similar cases of financial misconduct will be handled by the judiciary and investigative agencies moving forward in the Indian business landscape today.
