The Enforcement Directorate (ED) has seized assets worth Rs 1,120 crore from Reliance Anil Ambani Group companies due to alleged bank fraud involving Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), and Yes Bank.
The seized assets include 18 properties, fixed deposits, bank balances, and unlisted investments. Among the seized properties are seven from Reliance Infrastructure Limited, two from Reliance Power Limited, and nine owned by Reliance Value Services Pvt Ltd.
ED seize the Rs 1,120 Crore assets from Ambani Group
According to the ED, the financial investigation revealed fraudulent misuse of public funds by several Reliance ADA Group companies, including RCOM, RHFL, RCFL, Reliance Infrastructure Ltd, and Reliance Power Ltd.
From 2017 to 2019, Yes Bank invested Rs 2,965 crore in RHFL instruments and Rs 2,045 crore in RCFL instruments. These investments later became non-performing assets, with outstanding dues of Rs 1,353.50 crore for RHFL and Rs 1,984 crore for RCFL.
The investigation showed that more than Rs 11,000 crore of public money reached the group through indirect methods. Since Reliance Nippon Mutual Fund not directly support Anil Ambani Group finance companies under SEBI’s conflict-of-interest rules, the funds funneled through Yes Bank, the agency stated.
Multiple Banks Flag Fraud, Loans Misused
The ED is also looking into allegations based on a CBI FIR stating that RCOM and group companies misused loans worth Rs 40,185 crore obtained from Indian and foreign lenders between 2010 and 2012.
At least 9 banks have labeled these accounts as fraudulent. The ED’s findings suggest that over Rs 13,600 crore used to keep loan repayments afloat, over Rs 12,600 crore went to related entities, around Rs 1,800 crore placed in fixed deposits and mutual funds and later redirected for internal funding, funds sent overseas through outward remittances, and there was perception of misuse of bill discounting methods to channel money.
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