Anil Ambani Summoned by ED on August 5 in ₹3,000 Crore Loan Fraud Case Involving Fake Invoices, Bank Guarantees

New Delhi (India) August 1: The Enforcement Directorate (ED) calls Reliance Group chairman and managing director Anil Ambani. He has been called to testify in a case involving alleged loan fraud over Rs 17,000 crore.

ED Summons Ambani in Fraud Case

On August 5, he is expected to appear before authorities at the New Delhi headquarters of the ED.

The organization is conducting a money laundering investigation in accordance with the PMLA (Prevention of Money Laundering Act). The ED investigated about 35 premises in Mumbai connected to Ambani's Reliance Group last week. About 25 people and 50 businesses were found throughout the search.

Fake Bank Guarantee Under Probe

In a case involving a fake bank guarantee, the ED is searching in Orissa and Kolkata. According to ED, a contract was awarded to Anil Ambani's company on the basis of this fictitious bank guarantee.

Three locations connected to M/s Biswal Tradelink Private Limited and its directors are searched in Bhubaneswar. An associated location of an operator in Kolkata is also being investigated for. 

The ED says that Anil Ambani's company also produced fictitious invoices for commissions to businesses. There have been several unreported bank accounts found. These bank accounts have been the topic of suspicious transactions totaling crores of rupees.

The ED, the National Financial Reporting Authority (NFRA), and the Insolvency and Bankruptcy Board of India (IBBI) have all receives the results of a separate investigation from the Securities and Exchange Board of India (Sebi).

Sebi Finds ₹10,000 Crore Diversion

According to reports, Sebi's audit says that Reliance Infrastructure (R Infra) had embezzled almost Rs 10,000 crore through CLE Pvt Ltd. It is a business that is not listed as a connected party. The report claims that this diversion was covered up as inter-corporate deposits (ICDs).

It is discovered that CLE is a Reliance Infrastructure group entity. According to Sebi, the business uses it to transfer substantial amounts of money without providing enough information. It allegedly takes advantage of affiliated companies and the promoter groups.

According to Sebi, R Infra kept giving CLE advances despite the company's status as having a limited ability to repay. According to reports, R Infra wrote off Rs 10,110 crore between FY17 and FY21 as a result of provisions, impairments, and fair value adjustments.

The ED sources say that the investigation mainly concerns claims of unlawful loan diversion of approximately Rs 3,000 crore. It includes the loans that the Yes Bank made to Ambani's group entities between 2017 and 2019.

Aadrika Tayal