What’s Behind the ED's Summons to Anil Ambani in a Massive Loan Fraud Investigation?
ED Summons Anil Ambani for Questioning
Mumbai: The Enforcement Directorate (ED) has called Anil Ambani, the chairman and managing director of Reliance Group, for questioning regarding an ongoing investigation into a suspected loan fraud amounting to Rs 17,000 crore.
Sources indicate that Ambani is expected to appear at the ED's headquarters in the national capital on August 5.
Recently, the ED conducted raids at various locations associated with Ambani's Reliance Group, resulting in the seizure of numerous documents, hard drives, and other digital materials from sites in Mumbai and Delhi.
These raids commenced last Thursday as part of a money laundering investigation linked to the Yes Bank loan fraud case.
The ED, alongside the Central Bureau of Investigation (CBI), is engaged in an extensive inquiry into money laundering activities. This operation is part of a larger investigation into alleged financial misconduct, including potential fund diversion, loan fraud, and money laundering.
The focus of the ED's investigation is to determine if bank funds were funneled through shell companies and misappropriated by firms within the group. Concurrently, the CBI has initiated its own investigation into additional companies under Anil Ambani's Reliance Group.
Following FIRs filed by the CBI, the ED began its investigation into the money laundering activities of Reliance Group companies under the Prevention of Money Laundering Act (PMLA). Various agencies, including the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, have reportedly provided information to the ED.
Initial findings from the ED suggest a meticulously orchestrated scheme aimed at diverting public funds through deceitful practices against banks, shareholders, investors, and other public entities. The investigation also includes allegations of bribery involving bank officials, including the promoter of Yes Bank Limited.
Preliminary investigations have uncovered illegal loan diversions totaling approximately Rs 3,000 crore from Yes Bank between 2017 and 2019.
The ED has discovered that shortly before the loans were approved, funds were transferred to the accounts of Yes Bank promoters. The agency is currently examining the connections between these bribery allegations and the loans.