Reliance Group chairman Anil Ambani has sought permission from the Enforcement Directorate to join the proceedings through virtual mode, responding to the agency’s summons in an ongoing investigation under the Foreign Exchange Management Act (FEMA). The probe relates to alleged illegal outward remittances worth ₹100 crore linked to a highway project in Rajasthan.
According to a statement issued by Ambani’s spokesperson, the industrialist has written to the agency expressing his readiness to extend “full cooperation” and participate in the proceedings on the scheduled date. The ED, however, had originally asked for his physical presence on Friday to record a detailed statement under FEMA provisions.
Core of the Investigation
The case revolves around the Jaipur–Reengus Highway Project, executed more than a decade ago. Investigators suspect that nearly ₹100 crore was moved overseas through unauthorised channels during the execution of the project. The agency has reportedly examined multiple individuals connected to the project and several alleged hawala operators before deciding to question Ambani.
“Hawala” refers to the underground network used for illegal movement of money outside the formal banking framework, typically involving cash-based settlements across borders. Agencies believe that certain payments linked to the highway project may have been routed through such channels.
Ambani’s Position
The statement issued on behalf of Ambani clarifies that the matter dates back to 2010, when Reliance Infrastructure awarded an EPC contract for the construction of the JR Toll Road, a project that is now under the management of the National Highways Authority of India (NHAI).
It emphasises that the contract in question was purely domestic, with no foreign exchange component involved. This, the statement says, raises questions on the applicability of FEMA to the project itself.
The spokesperson also pointed out that Anil Ambani no longer holds any position on the board of Reliance Infrastructure. He served as a non-executive director between April 2007 and March 2022 and did not take part in the day-to-day operational activities of the company. The clarification signals that Ambani intends to distance himself from operational decisions made during the construction phase.
Past Scrutiny
This is not the first time the ED has questioned Ambani. In the past, he was examined by the agency in connection with a money laundering case stemming from allegations of bank fraud amounting to ₹17,000 crore involving various group entities. Ambani has consistently denied any wrongdoing and has maintained that he has always cooperated with investigative bodies.
FEMA Case Revived
The revival of a case dating back 15 years has drawn attention in corporate circles. Investigative agencies have reportedly re-examined several old contracts and transactions as part of a broader scrutiny into infrastructure projects awarded during the period.
The ED’s interest in the Jaipur–Reengus project appears to have intensified after recent questioning of individuals allegedly linked to unauthorised money-transfer networks. Sources suggest that some of these operators may have referenced payments made during the execution of the highway project, leading to the decision to summon Ambani.
Awaiting ED’s Response
As of now, the agency has not publicly confirmed whether it will permit a virtual appearance. In previous high-profile cases, the ED has typically insisted on physical presence, citing the need for detailed questioning and document verification.
If the agency declines Ambani’s request, the Reliance Group chairman may be required to be physically present at the Mumbai office.
Industry Reaction
Corporate observers note that the case arrives at a time when regulatory scrutiny of financial flows in major infrastructure projects has tightened. FEMA-related probes, in particular, have gained momentum as authorities attempt to curb unaccounted overseas transfers.
Industry insiders argue that the ED’s summons could be procedural in nature, especially considering the long time span since the alleged transactions occurred. Others believe the case may signal a broader crackdown on historical financial irregularities.
What Lies Ahead
Whether Ambani is allowed to join the investigation virtually or must appear in person, the ED’s inquiry indicates that the agency is intent on piecing together the financial trail linked to the Jaipur–Reengus project. With Ambani expressing willingness to cooperate, the next steps will depend on how the ED chooses to proceed.
The matter is expected to evolve in the coming weeks as the agency continues its examination of the alleged illegal fund transfers.
