Post by : Badri Ariffin

Reliance Group chairman Anil Ambani has been summoned by the Enforcement Directorate (ED) for the second time in a high-profile bank loan fraud and money laundering case. The 66-year-old business tycoon is required to appear before the federal agency on November 14, officials said.

The investigation focuses on loans raised by Reliance Communications (RCOM) and its affiliates between 2010 and 2012. Authorities allege that large sums borrowed from Indian banks, including the State Bank of India (SBI), were diverted to other group companies, breaching lending conditions.

According to ED, dues totaling Rs 40,185 crore remain unpaid, with five banks declaring RCOM’s accounts fraudulent. Investigators claim a significant portion of the loans was used not for operations but for repaying older debts, a practice known as “evergreening” of loans. At least Rs 13,600 crore is estimated to have been redirected through complex transactions, some allegedly involving overseas entities.

Multiple Regulatory Agencies Involved

The scrutiny on the debt-laden Reliance Group has intensified, with multiple agencies including the Central Bureau of Investigation (CBI), Securities and Exchange Board of India (SEBI), and Ministry of Corporate Affairs (MCA) probing alleged financial irregularities. The MCA recently initiated a fresh inquiry into fund diversion across several group companies, including Reliance Infrastructure, Reliance Commercial Finance, and CLE Pvt Ltd.

Following preliminary findings, the case has now been transferred to the Serious Fraud Investigation Office (SFIO). The agency will investigate money flow between entities and assign responsibility at senior management levels.

Asset Attachments and Previous Raids

Earlier this week, ED attached assets worth nearly Rs 7,500 crore belonging to various Reliance Group companies. These include 30 properties of Reliance Infrastructure and holdings linked to Adhar Property Consultancy, Mohanbir Hi-Tech Build, Gamesa Investment Management, Vihaan43 Realty, and Campion Properties.

In August, ED and CBI conducted searches at Ambani’s residence, offices, and locations tied to senior executives. A senior finance executive was arrested for allegedly facilitating fund transfers.

Once a leading corporate empire, Reliance Anil Dhirubhai Ambani Group (ADAG) has faced severe financial challenges over the past years. RCOM is under insolvency proceedings, while Reliance Home Finance, Reliance Commercial Finance, and Reliance Infrastructure have faced legal action and loan recovery measures. Several of these firms have also been probed by SEBI for fund usage and investor disclosure violations.

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