Reliance Infra Shares Clarification Amid ED Action, Says Anil Ambani Not On Board Since 3.5 Years

Mumbai: Amidst large-scale Enforcement Directorate's (ED) action, Reliance Infrastructure has issued a clarification assuring that the central agency's action will not impact its business operations, shareholders, employees, or any other stakeholders. The company has also clarified that Anil Ambani, the promoter of Reliance Infrastructure, has not been on the board of the company for more than 3.5 years. According to a statement issued by Reliance Infra, the ED's action pertains to certain assets of the company that have been provisionally attached for alleged PMLA violations.

The Enforcement Directorate (ED) has provisionally attached assets worth Rs 7500 crore belonging to the Reliance Group led by Anil Ambani, as part of a money laundering investigation under the Prevention of Money Laundering Act (PMLA). The action was a massive setback for the company, which has been grappling with various challenges in recent times.

According to reports, the ED's action involved the attachment of around 132 acres of land in the Dhirubhai Ambani Knowledge City (DAKC) complex in Navi Mumbai, valued at around Rs 4462 crore. The latest development followed the agency's earlier move to attach 42 properties estimated to be worth Rs 3083 crore in connection with the same case. The cumulative value of attached assets has now allegedly risen to about Rs 7500 crore.

The ED's investigation is centred on alleged bank fraud cases involving Reliance Communications Limited, Reliance Communications Finance Limited, and Reliance Home Finance Limited. The agency has been probing the company's financial dealings and transactions, including alleged fund diversion and money laundering.

The probe has revealed that a portion of the funds may have been siphoned off abroad through foreign remittances, raising questions over the alleged misuse of loan proceeds.

In response to the ED's action, Reliance Infrastructure issued a statement, clarifying that the attachment of its assets would have no impact on its business operations or stakeholders. The company asserted that Anil Ambani has not been on the board of Reliance Infrastructure Limited for more than 3.5 years.

The ED's action has raised questions regarding the financial management practices of the Reliance Group. The case has taken a serious turn, with five banks declaring Anil Ambani as a fraud borrower, with total dues amounting to nearly Rs 19,694 crore. The investigation suggested that a portion of these funds may have been siphoned off abroad through circuitous transactions.

The agency has been scrutinising the company's transactions and dealings, including its involvement in various infrastructure projects and financial arrangements. Reliance Infrastructure has been facing various challenges in recent times, including debt restructuring and regulatory issues.

Further details regarding the latest development are awaited.