ED action on Anil Ambani intensifies as assets worth Rs 1,120 crore are seized

Mumbai (The Uttam Hindu): The troubles of debt-ridden industrialist Anil Ambani and his Reliance Group show no signs of abating. The Enforcement Directorate (ED) has once again taken major action, tightening its grip. The agency has temporarily seized more than 18 properties, fixed deposits (FDs), and shares worth ₹1,120 crore belonging to the Reliance Anil Ambani Group.

The action has been taken in the Yes Bank fraud and money laundering cases related to Reliance Home Finance Limited (RHFL) and Reliance Commercial Finance Limited (RCFL).

What was seized?

The ED seized seven major assets belonging to Reliance Infrastructure Limited, two belonging to Reliance Power Limited, and nine belonging to Reliance Value Services Private Limited. Additionally, the investigating agency seized fixed deposits (FDs) and unquoted investments held in the names of various companies, including Reliance Venture Asset Management, M/s Fee Management Solutions, and Aadhar Property Consultancy.

The ED has already

seized assets worth over ₹8,997 crore in this case. With this latest action, the total attachment has reached ₹10,117 crore. The agency's investigation found that companies like Reliance Communications, Reliance Home Finance, and Reliance Power had embezzled public money on a large scale.

The investigation into the Yes Bank and mutual fund scam

has revealed a complex web of financial manipulation. Due to SEBI's 'Conflict of Interest' rules, Reliance Nippon Mutual Fund could not directly invest in Anil Ambani's companies. To avoid these rules, public money was routed through Yes Bank. Yes Bank received huge funds from mutual funds, which the bank invested in RHFL and RCFL during 2017-19. This investment (around Rs 5,000 crore) later sank and became NPA. This means that public money was routed to Anil Ambani's companies through a circuitous route.

'Evergreening' of loans and fund diversion

The investigation by the Enforcement Directorate (ED) has revealed very shocking methods of fund diversion. The investigation has revealed that in violation of rules, loans were taken from one bank and used for 'evergreening', i.e., repaying old loans of other banks. Apart from this, more than Rs 13,600 crore was diverted by RCOM and group companies, out of which Rs 12,600 crore was sent to connected parties. Not only this, the facility of bill discounting was also misused on a large scale for fund transfer.

It's worth noting that Anil Ambani's RCom and other companies owe banks approximately ₹40,185 crore, and nine banks have declared their accounts fraudulent. Based on a CBI FIR, the ED is investigating the entire matter under the money laundering charges.