The Enforcement Directorate issued a lookout notice against Anil Ambani on Friday to stop the businessman from travelling abroad. The update came hours after it summoned the Reliance Group Chairman for questioning on August 5 in connection with a Rs 3,000 crore loan fraud case. Shares of Reliance Power and Reliance Infrastructure had both hit their lower circuit limits on Friday after reports indicated that Ambani had been summoned for questioning.
Ambani has been asked to appear before the probe agency for questioning at the ED headquarters in Delhi. The investigation pertains to suspected financial irregularities and possible violations under the Prevention of Money Laundering Act. Ambani’s statement is expected to play a crucial role as the agency examines the role of various entities and individuals linked to the case.
What is the case?
The summons come after the federal agency conducted searches at 35 premises of 50 companies and 25 people, including executives of his business group, last week. The searches, launched on July 24, went on for three days.
The action pertains to alleged financial irregularities and collective loan “diversion” pegged at more than Rs 17,000 crore by multiple group companies of Anil Ambani, including Reliance Infrastructure (R Infra).
The agency found, on the basis of a Sebi report, that R Infra “diverted” funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company named CLE. It is alleged that R Infra did not disclose CLE as its “related party” to avoid approvals from shareholders and audit panels.
(With inputs from agencies)