Indian financial crime agency freezes Anil Ambani Group properties worth $1.1 billion
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Troubled conglomerate Reliance Anil Ambani Group is owned by Anil Ambani, the younger brother of billionaire Mukesh Ambani.
PHOTO: REUTERS
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- India's ED froze ₹75 billion in Reliance Anil Ambani Group assets amid a money-laundering probe related to ₹136 billion diverted funds.
- The investigation centres on loan "evergreening" involving Reliance Communications and affiliates, using YES Bank loans from 2017-2019.
- Public funds, including YES Bank loans, were allegedly diverted through shell companies, with transactions blocked on properties in Mumbai, Delhi, and Chennai.
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NEW DELHI - India’s financial crime agency has frozen 75 billion rupees (S$1.1 billion) worth of properties linked to companies of the Reliance Anil Ambani Group as part of a money-laundering probe, it said in a statement on Nov 3.
The move relates to cases involving Reliance Communications and its affiliates over the alleged diversion of about 136 billion rupees and loans of more than US$569 million (S$743 million) taken by the group from India’s Yes Bank between 2017 and 2019 that the Enforcement Directorate (ED) says were diverted and laundered.
The troubled conglomerate is owned by the younger brother of billionaire Mukesh Ambani.
Reliance Infrastructure, another Anil Ambani Group company, said there was no impact on its operations, shareholders and employees from the ED’s action.
Other group companies did not comment, while Yes Bank declined to comment.
ED said Reliance Communications and its group companies diverted more than 136 billion rupees through loan “evergreening”, a practice where new loans are given to stressed borrowers to enable them to repay existing loans.
Investigators have detected the “fraudulent diversion of public money” by entities including Reliance Group-controlled companies Reliance Home Finance and Reliance Commercial Finance, the ED said.
These companies received over 100 billion rupees of public funds, including loans from Yes Bank, through shell companies, it said.
The agency also said it had blocked any transactions from taking place on residential units and land parcels across Mumbai, Delhi and Chennai, including industrialist Anil Ambani’s family residence in Mumbai.
“ED’s investigation revealed that loans taken by one entity from one bank were utilised for repayment of loans taken by other entities from other banks, transfer to related parties, and investments in mutual funds, which was in contravention to the terms and conditions of the sanction letter of the loans,” the agency said.
The Reliance Group entities are also accused of paying bribes to Yes Bank officials before loans were disbursed, a government source had said earlier. REUTERS
