Anil Ambani Appears Before ED in Loan Fraud Probe
Industrialist Anil Ambani appeared before the Enforcement Directorate (ED) in New Delhi on August 5 as part of an ongoing investigation into a major bank loan fraud and alleged money laundering case. The total loan exposure under scrutiny is approximately ₹17,000 crore, involving several companies from the Reliance Group.
Preventive Measures Taken by ED
A Look-Out Circular was issued earlier to ensure that Ambani remained in the country during the investigation. This step was aimed at securing his cooperation with the authorities and avoiding any attempt to leave the country during ongoing proceedings.
Probe Into Financial Diversion and Shell Firms
The ED is investigating whether large corporate loans given to companies like Reliance Infrastructure, Reliance Communications, and Reliance Home Finance were misused. Officials suspect that around ₹3,000 crore may have been funneled through shell companies using backdated documents and fake guarantees.
The case draws on inputs from multiple regulatory and investigative agencies. The ED is also reviewing due diligence by 39 banks that sanctioned loans during 2017–2019 to assess if there were any compliance failures.
Arrest Linked to Fake Bank Guarantee
The agency recently arrested Partha Sarathi Biswal, a top executive linked to one of the group companies, for allegedly using a forged ₹68 crore bank guarantee in connection with a Reliance Power project. He is now being questioned under the Prevention of Money Laundering Act (PMLA).
Market Fallout and Company Response
Following news of the investigation, shares of Reliance Infrastructure and Reliance Power fell sharply, losing up to 15% in value over a span of several trading sessions. The company, however, has denied any wrongdoing and claimed the actual financial exposure was lower than what is being projected.
A spokesperson clarified that the matter had been part of a court-mediated settlement and that Anil Ambani has not held a board position in Reliance Infrastructure since March 2022.
Legal Process Underway
Ambani’s appearance before the ED is seen as a key step in the investigation. Officials are expected to continue questioning executives, auditors, and banking officials in the coming days. If wrongdoing is established, the case could lead to further legal action under India’s anti-money laundering laws.
