New Delhi: The Enforcement Directorate (ED) has initiated another major action in the alleged bank fraud cases linked to Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL), provisionally attaching assets worth ₹1,120 crore. The fresh attachment forms part of the wider investigation into the financial dealings of the Reliance Anil Dhirubhai Ambani Group (Reliance ADAG). With this, the cumulative value of attached assets across group-related cases has reached ₹10,117 crore.
According to officials, the newly attached assets include more than 18 immovable properties, fixed deposits, bank balances and holdings in unlisted investments. These assets are reportedly linked to various companies associated with the group.
Assets of Reliance Infrastructure, Reliance Power Among Those Attached
Sources indicated that the attached properties include:
- Seven assets belonging to Reliance Infrastructure Ltd
- Two assets of Reliance Power Ltd
- Nine properties linked to Reliance Value Services Pvt Ltd
Additionally, the ED has attached fixed deposits, bank balances and unlisted investments in the names of several related entities, including Reliance Value Services, Reliance Venture Asset Management Pvt Ltd, Phi Management Solutions Pvt Ltd, Adhar Property Consultancy Pvt Ltd, and Gamesa Investment Management Pvt Ltd.
Earlier Attachments Worth ₹8,997 Crore Bring Total to Over ₹10,117 Crore
Prior to this action, the ED had attached ₹8,997 crore worth of properties in cases connected to Reliance Communications (RCom), RCFL and RHFL. With the latest proceedings, the total provisional attachment across the Anil Ambani group has crossed ₹10,117 crore, making it one of the largest enforcement actions against a single corporate conglomerate in recent years.
ED Alleges Fraudulent Diversion of Public Money
The agency has alleged that multiple companies of the Anil Ambani group including RCom, RHFL, RCFL, RIL and Reliance Power engaged in fraudulent utilisation and diversion of public funds. According to the ED’s findings:
- Yes Bank invested ₹2,965 crore in RHFL and ₹2,045 crore in RCFL between 2017 and 2019.
- By December 2019, these exposures had turned non-performing assets (NPAs).
- RHFL had an outstanding of ₹1,353.5 crore, while RCFL owed ₹1,984 crore.
The ED claims that RHFL and RCFL collectively received over ₹11,000 crore of public money, a substantial portion of which was diverted through complex structures.
Alleged ‘Circuitous Route’ Used to Bypass SEBI Norms
Investigators allege that substantial funds originated from Reliance Nippon Mutual Fund, which, as per SEBI guidelines, is not permitted to directly invest in finance companies of the same corporate group due to conflict-of-interest norms. The ED claims:
“Public funds were channelled not directly, but through a circuitous route, via Yes Bank’s exposure, to ultimately benefit group entities of Reliance.”
CBI FIR Flags ₹40,185 Crore Outstanding; Multi-Agency Probe Intensifies
The ED’s probe is also based on a CBI FIR filed against RCom, Anil Ambani and other officials. The FIR alleges that:
- Between 2010 and 2012, RCom and its group companies raised large loans from multiple Indian and foreign lenders.
- The cumulative outstanding rose to ₹40,185 crore.
- Nine banks later categorised these accounts as fraudulent.
The ED alleges that group companies:
- Used loans from one bank to repay debts of another
- Transferred funds to related entities
- Invested substantial amounts in fixed deposits and mutual funds before routing the funds back to group companies
Investigators say such practices violated several loan covenants.
Evergreening, Related-Party Transfers and Overseas Siphoning Alleged
The ED noted the following in its detailed findings:
- More than ₹13,600 crore was used for evergreening loan accounts
- ₹12,600 crore was transferred to related parties
- About ₹1,800 crore was invested in FDs and mutual funds and later diverted within the group
- Bill-discounting arrangements were allegedly misused at scale
A portion of the funds was transferred abroad through foreign remittances, amounting to suspected siphoning
