ED calls Anil Ambani for fresh questioning in Rs 40,000 crore money laundering case

The Enforcement Directorate (ED) has summoned Reliance ADAG Chairman Anil Ambani again on November 14 in a money laundering probe after attaching Rs 4,462 crore worth of land in Navi Mumbai. The case involves alleged diversion of loans worth Rs 40,000 crore

New Delhi: The Enforcement Directorate (ED) has summoned Reliance ADAG Group Chairman, Anil Ambani, again on November 14 for questioning in the money laundering case against the conglomerate, according to sources.

The development comes close on the heels of ED provisionally attaching over 132 acres of land worth Rs 4,462.81 crore in Dhirubhai Ambani Knowledge City at Navi Mumbai earlier this week, under the provisions of Prevention of Money Laundering Act, sources added.

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ED had earlier attached 42 properties worth over Rs 3,083 crore in the bank fraud cases of Reliance Communications Ltd (RCOM), Reliance Commercial Finance Ltd., and Reliance Home Finance Ltd.

“The total attachment in these cases stands at over Rs 7,545 crore. ED is actively pursuing perpetrators of financial crime and is committed to restituting the proceeds of crime to their rightful claimants,” the statement said.

The financial watchdog had initiated an investigation based on CBI’s FIR under sections 120-B, 406, and 420 of the Indian Penal Code, 1860, and section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1989, against RCOM, Anil Ambani, and others.

RCOM and its group companies have availed of loans from domestic and foreign lenders since 2010, with a total outstanding amount of Rs 40,185 crores. Five banks have declared the loan accounts of the Group as fraudulent, the statement said.

The ED investigation has revealed that loans taken by one entity from one bank were utilized for repayment of loans taken by other entities from other banks, transfer to related parties, and investments in mutual funds, which was in contravention of the terms and conditions of the sanction letter of the loans, the statement had explained.

In particular, RCOM and its group companies diverted over Rs 13,600 crore for evergreening of loans; over Rs 12,600 crore was diverted to connected parties, and over Rs 1,800 crore was invested in FDs/MFs, etc., which was substantially liquidated for rerouting to group entities.

Huge misuse of bill discounting for funnelling funds to connected parties has also been detected by ED. Certain loans were siphoned off outside India through foreign outward remittances. Further investigation is in progress, according to an ED statement.