ED summons top executives of Anil Ambani-led Reliance Group: Report
The Enforcement Directorate (ED) on Monday issued summons to several top executives of the Anil Ambani-led Reliance Group in connection with an ongoing money laundering investigation, a day before Ambani himself is slated to appear before the agency. According to ET Now, which cited sources familiar with the development, senior group executives including Amitabh Jhunjhunwala and Sateesh Seth are among those summoned. The ED has reportedly issued at least six summons under the Prevention of Money Laundering Act (PMLA) so far. All the executives had previously been subject to searches by the ED as part of its probe. The agency suspects that these individuals played key roles in orchestrating transactions that allegedly defrauded a consortium of banks.Reliance Infrastructure shares were trading at Rs 296.15, down 4.99% on Monday at 1:51 PM. Meanwhile, Reliance Power's shares were down by 5.01% at the same time. An ET Bureau exclusive report on Monday revealed that the ED also plans to summon officials from nearly 20 public and private sector banks that had extended loans to various Reliance Group companies. The agency intends to question these officials on the due diligence exercised before sanctioning loans and the steps taken when repayments failed.
'We want to ascertain what action the banks took, if any, against the companies which defaulted. Did they lodge a complaint with any investigating agency, seeking registration of a criminal case against the companies?' a senior official told ET.
According to the ET report, ED's line of inquiry will include understanding the credit assessment processes followed by lenders, many of whom are believed to have issued loans that later turned into non-performing assets.
The money laundering investigation centres around alleged irregularities in loans worth approximately Rs 17,000 crore extended to three Reliance Group companies—Reliance Home Finance Ltd (RHFL), Reliance Commercial Finance Ltd (RCFL), and Reliance Communications (RCom). According to ED data cited by the ET report, RHFL owes over Rs 5,901 crore, RCFL Rs 8,226 crore, and RCom nearly Rs 4,105 crore to various lenders.
Apart from Yes Bank, other financial institutions involved include State Bank of India, UCO Bank, Axis Bank, ICICI Bank, HDFC Bank, Bank of India, and Punjab and Sind Bank.
ET was the first to report on August 1 that the ED had summoned Anil Ambani for questioning. He is expected to appear at the ED headquarters in New Delhi on August 5.
In a development linked to the case, the ED on Friday arrested Partha Sarathi Biswal, managing director of Odisha-based Biswal Tradelink Pvt Ltd (BTPL), for allegedly arranging a fake bank guarantee worth Rs 68 crore for a Reliance Group entity. The agency informed the court that Biswal had received Rs 5.40 crore from Reliance Power Ltd, parent company of Reliance Nu Bess Ltd, in return for the forged guarantee submitted for a tender floated by the Solar Energy Corporation of India Ltd (SECI). According to the ED, documentary evidence indicates collusion between Biswal Tradelink and Reliance Nu Bess, contradicting the latter's claim of being defrauded. A senior official told ET, 'Documentary evidence reveals that apparently the two parties acted in collusion. The directors of Biswal Tradelink were found to be previous directors of Reliance Group.'The agency also recovered several incriminating documents and digital devices during its August 1 raids. It alleged that BTPL maintained multiple undisclosed bank accounts and conducted transactions disproportionate to its declared turnover, with "dummy directors" used to facilitate operations.The Delhi Police FIR in the case was initially based on a complaint by Reliance Nu Bess, accusing BTPL of fraud. However, ED officials now believe the two firms may have been jointly involved in the forgery.In a statement issued Friday, the Reliance Group maintained that it acted 'bonafidely' and was itself a 'victim of fraud, forgery, and cheating conspiracy.'
The group stated it had made due disclosures to stock exchanges in November 2024 and had lodged a criminal complaint against the third party with the Delhi Police's Economic Offences Wing in October 2024.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
15 minutes ago
- Time of India
ED summons Reliance Group brass in loan fraud probe
The Enforcement Directorate has summoned top executives of Anil Ambani's Reliance Group, including Amitabh Jhunjhunwala and Sateesh Seth, for questioning in a ₹17,000 crore loan fraud case. The ED is also set to question bank officials regarding actions taken against Reliance companies that defaulted on loan repayments. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: The Enforcement Directorate (ED) has summoned around half a dozen current and former top executives of Anil Ambani 's Reliance Group for questioning in connection with its probe into alleged money laundering in a ₹17,000 crore loan fraud case. Amitabh Jhunjhunwala and Sateesh Seth are among those summoned, said people in the know. The investigating agency has asked Jhunjhunwala, a former top executive of the group, to appear before it on Wednesday. Seth, who is still among the top leaders of the group, is summoned on Thursday. Both were close aides of Anil other Reliance Group executives have also been ordered to be available for questioning, the people chief Anil Ambani has been asked to appear at the ED headquarters in New Delhi on Tuesday sources said those summoned are suspected to have played key roles in the alleged bank loan fraud ET on Monday reported that the ED will also summon officials of private and public sector banks that had given loans to the Anil Ambani-led Reliance federal agency will quiz the bank officials on the action initiated by them, if any, against Anil Ambani's companies which failed to repay the loans, ET reported."We want to ascertain what action did banks take against the companies which failed to repay the loans taken from them (banks). Did they complain to the police, seek registration of an FIR against the companies or not", a senior official had told ET on the condition of Rs 17,000 crore loans that three Anil Ambani Group companies - Reliance Home Finance Ltd, Reliance Commercial Finance Ltd and Reliance Communications - had taken from nearly 20 private and public sector banks, including Yes Bank ICICI Bank and HDFC Bank , had turned non-performing. The ED is investigating alleged laundering of the loan agency last week carried out searches at multiple entities and individuals linked to the group. Late on Friday, it arrested Partha Sarathi Biswal, managing director of Odisha-based Biswal Tradelink Pvt Ltd Biswal Tradelink is accused of arranging a fake bank guarantee of ₹68 crore for a Reliance Group firm.A Delhi special court has remanded Biswal in ED's custody till August 6.A statement issued by Reliance Group on Friday said "The company and its subsidiaries acted bonafidely and have been a victim of fraud, forgery and cheating conspiracy. The company has made due disclosure on this to the stock exchanges on November 7, 2024."
Hans India
15 minutes ago
- Hans India
Apcob celebrates 62nd Foundation Day
Vijayawada: The Andhra Pradesh State Cooperative Bank (Apcob) is a vital institution for the state's rural economy, said Minister for Agriculture, Cooperation, and Marketing, Kinjarapu Atchannaidu. He was speaking at the bank's 62nd Foundation Day celebrations held at the MB Vijnana Kendram here on Monday. The minister extended his greetings to farmers, women's federations, youth, cooperative society members, and bank officials. He highlighted APCOB's crucial role in providing timely loans for seeds, fertilizers, and other agricultural needs, thereby supporting the state's farmers. 'The government is fully committed to strengthening the cooperative structure to financially empower every farming household,' he stated. He assured that with technology, cooperative bank services would become more accessible and citizen-friendly. He praised institutions like DCCBs (District Cooperative Central Banks), PACS (Primary Agricultural Credit Societies), and APCOB for serving rural areas that commercial banks often neglect. Minister Atchannaidu noted APCOB's significant role in supporting underprivileged communities. He recalled that before 2014, there was no separate ministry for the cooperative sector at the central level. However, under Prime Minister Narendra Modi, a dedicated ministry was established, giving the sector national priority. The minister said that in Andhra Pradesh, agriculture and cooperatives are two crucial sectors, and economic support is key to their growth. He noted that APCOB has expanded its services beyond just loans to include providing agricultural inputs, and even running medical stores and petrol stations, which contribute significantly to rural economic infrastructure. The minister also highlighted the success of the DWCRA model, which was introduced under Chief Minister N Chandrababu Naidu's leadership and has now become a national example. He said nearly one crore women are engaged in cooperative transactions worth Rs 42,000 crore. However, most of these transactions are currently handled by private banks. The minister assured that plans will be developed to route these transactions through Apcob and its affiliates, which would offer lower interest rates than private banks. He concluded by urging all stakeholders to work together to advance the cooperative sector and expressed hope that Apcob would achieve greater heights in the future. Apcob chairman G Veeranjaneyulu, Special Chief Secretary B. Rajasekhar, RCS Amar Babu, Apcob MD Srinath Reddy, Nabard CGM Gopal, DCCB chairpersons, PACS leaders, and other dignitaries were present.
Hans India
15 minutes ago
- Hans India
Police intensify investigation into surrogacy and IVF scam, more cases booked
Hyderabad: Hyderabad city police have intensified their investigation into an ongoing surrogacy and IVF scam connected to the Universal Srushti Fertility Centre. The probe has revealed that there are several victims, including Non-Resident Indian (NRI) couples, who have fallen prey to the fraudulent network. Gopalapuram police have registered four more First Information Reports (FIRs) following new complaints from victims alleging fraud, medical malpractice, and financial extortion by the centre's management. In one of the fresh complaints, a Hyderabad-based woman alleged that Dr Athaluri Namrata administered hormone injections under the guise of a surrogacy procedure and extorted a large sum of money through staff members Dr Vidyulatha, Kalyani, Seshagiri, and Srinivasa Reddy. Additional complaints highlight the suspects' reach beyond domestic borders, with NRI victims reportedly defrauded of Rs 25 lakh. The victims have submitted their medical reports and transaction details as evidence to the investigating officials, strengthening the case for legal action. According to police, the prime suspect, Dr Namratha, along with her associates Dr Sadanandam, Chenna Rao, Archana, and Surekha, allegedly cheated a couple from Nalgonda district of Rs 44 lakh under the pretext of facilitating a surrogacy procedure. Police authorities suspect a larger organised racket is exploiting vulnerable couples under the guise of assisted reproductive treatments. The investigation is ongoing, with more arrests expected as the police work to unravel the network behind the fertility centre scam.
