CBI, SEBI, ED - The Triple Probe Around Reliance Anil Ambani Group Explained

Among the latest probe-linked woes for the Anil Ambani Group, enforcement directorate (ED) has intensified its investigation and attached properties worth about ₹3,084 crore linked to its entities under 5(1) of the Prevention of Money Laundering Act (PMLA).

"This order is issued in exercise of powers conferred under Sub-section (1) of Section 5 of the Prevention of Money Laundering Act, 2002 (15 of 2003) [hereinafter referred to as “PMLA”," ED said. 

The attached assets are Ambani's residence at Pali Hill, Bandra (West), Mumbai, the Reliance Centre property in New Delhi, and several assets across Delhi, Noida, Ghaziabad, Mumbai, Pune, Thane, Hyderabad, Chennai (including Kancheepuram) and East Godavari. The list also include office premises, residential units and land parcels. The aggregate attached value across the four orders is approximately ₹3,084 crore.

The ED led case is investigating the diversion and laundering of public funds raised by Reliance Home Finance Ltd. (RHFL) and Reliance Commercial Finance Ltd. (RCFL). During 2017–2019, Yes Bank invested ₹2,965 crore in RHFL instruments and ₹2,045 crore in RCFL instruments. These turned into nonperforming investments by December 2019, with ₹1,353.50 crore then outstanding for RHFL and ₹1,984 crore for RCFL.

Also Read:ED Attaches Over 40 RIL Anil Ambani Group Properties Worth Rs 3,084 cr

ED investigation found that direct investment by the erstwhile Reliance Nippon Mutual Fund into Anil Amabni Group financial companies was not legally possible due to SEBI’s mutual fund conflictofinterest framework. In violation of these guidelines the money invested by general public in the mutual fund was routed indirectly through Yes Bank exposures, which ultimately landed with Anil Ambani Group companies.

The fundtracing by ED found diversion of funds, onlending to grouplinked entities and ultimate siphoning off. Substantial portions of corporate loans (General Purpose Corporate Loans) ultimately landed in accounts of Reliance group companies.

CBI Probes Anil Ambani In Rs 2,796-crore Yes Bank Corrpution Case

In a major development in the Yes Bank corruption case, the Central Bureau of Investigation (CBI) has accused industrialist Anil Ambani of approving favours extended to the family of the bank’s founder Rana Kapoor, allegedly in violation of established credit policy. The agency, in its detailed chargesheet filed before a special CBI court in Mumbai, claims that Yes Bank suffered losses of Rs 2,796.77 crore due to risky investments in Non-Convertible Debentures (NCDs) and Commercial Papers (CPs) of Ambani’s companies.

In yet another fraud case being inevstigated by a central crime probing agency, the Central Bureau of Investigation (CBI) has alleged RHFL and RCFL had provided loans to firms owned by Kapoor's wife Bindu Kapoor and daughters without follwowing due dillegence.

As per detailed chargesheet filed before a special CBI court in Mumbai, Yes Bank posted Rs 2,796.77 crore in losses as a result of high risk investments in Non-Convertible Debentures (NCDs) and Commercial Papers (CPs) of Ambani’s companies.

The loan amount approved in favour of RAB Enterprises (India) Pvt Ltd and Bliss House Pvt Ltd, owned by Bindu Kapoor totalled Rs 60 crore.

Meanwhile, Rs 225 crore each went to RAB Enterprises and Imagine Estate Pvt Ltd, which is also under her control. The loans were provided at 9.25% annual interest.

Market Regulator Sebi Issues Show Cause Notice To R-Power & R-Infra

Sebi had issued show cause notices to Reliance Power Ltd. and Reliance Infrastructure Ltd. for alleged violations of fraudulent and unfair trade practices regulations. The notices relate to Reliance Infrastructure's exposure in CLE Private Limited.

“The company has received a Show Cause Notice from SEBI in relation to Reliance Infrastructure Limited’s exposure in CLE Private Limited, for alleged violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003,” Reliance Power said in a stock exchange filing.

Reliance Infrastructure claims the dispute with CLE was settled through mediation for Rs 6,503.00 crore.

“The settlement with CLE Private Limited has already been concluded and stands fully implemented in terms of the Mediation Act, 2023. The company shall take appropriate steps in the matter, as legally advised,” Reliance Infrastructure said.

Commenting on Sebi's show cause notices, Reliance Power said, “The Company has zero exposure to CLE Private Limited. The company shall take appropriate steps in the matter, as legally advised."

This comes after Enforcement Directorate (ED) raided over 35 locations and searched over 50 companies in New Delhi and Mumbai linked to the Anil Ambani-led Reliance Group.