Hours after the Enforcement Directorate carried out searches at six Anil Ambani-owned Reliance Infrastructure premises in Indore and Mumbai on Tuesday, the company clarified that the investigation relates to a contract awarded more than 15 years ago.
The ED raids were made in connection with a probe into alleged illegal remittances abroad under the Foreign Exchange Management Act (FEMA).
“In 2010, the Company had awarded an EPC contract for the construction of the JR Toll Road (Jaipur–Ringus Highway) to Prakash Asphaltings & Toll Highways. This was a domestic contract with no foreign exchange involved,” the company said in an official release.
Reliance Infrastructure added that the project was completed and the company has no ongoing relationship with the contractor. The toll road has been with NHAI for the past four years, the company said.
Surprise ED raids at six locations
The ED on Tuesday carried out searches in Maharashtra and Madhya Pradesh as part of a probe under FEMA. According to PTI, officials said at least six premises linked to the company in Mumbai and Mhow (Indore) were covered during the operation.
The searches are connected to allegations of illegal overseas remittances made by Reliance Infrastructure, with the ED investigating possible FEMA violations, they added.
Ongoing ED investigations into Reliance Infra
The ED is already probing alleged financial irregularities involving more than Rs 17,000 crore linked to several Anil Ambani group firms, including Reliance Infrastructure, under the Prevention of Money Laundering Act (PMLA).
The action follows a SEBI report that flagged concerns over R Infra allegedly “diverting” funds disguised as inter-corporate deposits (ICDs) to Reliance Group entities through a company called CLE.
Investigators allege that R Infra failed to disclose CLE as a “related party”, thereby bypassing shareholder and audit committee approvals.
The Reliance Group has denied any wrongdoing. In an earlier statement, the company dismissed the claims as a decade-old issue, clarifying that the reported diversion of Rs 10,000 crore was exaggerated and that its actual exposure was closer to Rs 6,500 crore, fully disclosed in its financial statements.