The Enforcement Directorate filed a fresh case against Anil Ambani and Reliance Communications this week in a Rs 2,929 crore bank fraud case. The development comes mere weeks after the beleaguered businessman faced CBI raids — with a report from the probe agency forming the foundation of the latest allegations. The ED has so far filed three separate money laundering cases against Ambani and alleges bank frauds exceeding Rs 17,000 crore. The businessman has repeatedly denied the allegations and insists that he had been singled out for punitive action.
According to reports, the ED case was filed under the Prevention of Money Laundering Act on the basis of an FIR registered by the CBI last month. Reliance Communications and former director Ambani have been accused of defrauding State Bank of India and causing a Rs 2,929.05 crore loss. The Central Bureau of Investigation had also led raids against his home and RCom premises last month in connection with this case.
Three banks have so far levelled fraud allegations against Ambani — highlighting alleged mis-utilisation of loans granted more than a decade earlier. Under banking laws, once an account is declared fraudulent, it must be referred to enforcement agencies for criminal action, and the borrower is barred from accessing fresh finance from banks and regulated institutions for five years.
Ambani denies allegations
Ambani has repeatedly denied the claims and a spokesperson insisted that the tycoon was being “selectively singled out”. Representatives had also noted after the CBI action that the SBI complaint was linked to matters dating back more than 10 years. At the time Ambani was a non-executive director of the company with “no involvement in its day-to-day management”.
The initial ED probe was related to alleged financial irregularities and collective loan “diversion” pegged at more than Rs 17,000 crore by multiple group companies of Ambani — including Reliance Infrastructure. This also included the allegation of “illegal” loan diversion of around Rs 3,000 crore given by Yes Bank to Ambani group companies between 2017 and 2019.
Bank of Baroda joins SBI, Bank of India
Bank of Baroda became the latest to classify the loan account of insolvent Reliance Communications as fraudulent and tag Ambani as a “fraud”. According to a regulatory filing, BoB had sanctioned Rs 2,462.50 crore in line of credit to the company and eventually deemed the account a non-performing asset in June 2017. BoB said Rs 1,656.07 crore had remained outstanding from the total amount till the end of August this year.