Anil Ambani Summoned by ED in Rs 40,185 Crore Loan Diversion Case

Post by : Bianca Suleiman

The Enforcement Directorate (ED) has issued a second summon to Reliance Group chairman Anil Ambani in a sprawling investigation into alleged bank loan fraud and money laundering. Officials said the 66-year-old is expected to appear before the federal agency on November 14.

Probes centre on borrowings taken by Reliance Communications (RCOM) and linked entities during 2010–2012. Investigators contend that significant sums obtained from Indian banks, among them the State Bank of India (SBI), were rerouted to other group companies in violation of lending covenants.

According to the ED, outstanding liabilities amount to Rs 40,185 crore, and five lenders have treated RCOM’s accounts as fraudulent. Authorities allege that a large portion of the funds was not used for business operations but to service older debts through so-called "evergreening". They estimate roughly Rs 13,600 crore was channelled via complex transactions, some routed through overseas entities.

Multiple agencies probing

The case has drawn attention from several regulatory bodies. The Central Bureau of Investigation (CBI), Securities and Exchange Board of India (SEBI) and the Ministry of Corporate Affairs (MCA) have each been examining different aspects of the group’s finances. The MCA has opened a fresh probe into alleged diversion of funds at firms including Reliance Infrastructure, Reliance Commercial Finance and CLE Pvt Ltd.

Preliminary findings from these reviews led to the matter being handed to the Serious Fraud Investigation Office (SFIO), which will scrutinise inter-company money flows and determine senior management accountability.

Assets attached after raids

Earlier this week, the ED moved to attach assets valued at about Rs 7,500 crore linked to various Reliance Group companies. The attachable properties include 30 parcels belonging to Reliance Infrastructure and stakes tied to Adhar Property Consultancy, Mohanbir Hi-Tech Build, Gamesa Investment Management, Vihaan43 Realty and Campion Properties.

In August, coordinated searches by the ED and the CBI targeted Ambani’s home, business offices and sites associated with senior executives. Authorities detained a senior finance officer accused of aiding disputed fund transfers.

Once a dominant conglomerate, Reliance Anil Dhirubhai Ambani Group (ADAG) has been under severe financial strain in recent years. RCOM is undergoing insolvency proceedings, while Reliance Home Finance, Reliance Commercial Finance and Reliance Infrastructure have faced recovery actions and legal scrutiny. Several group companies have also been investigated by SEBI over their use of funds and investor disclosures.