NEW DELHI: The Enforcement Directorate on Friday summoned industrialist Anil Ambani on August 5 in loan fraud case amid probe over bribery, unsecured loans allegations.
Ambani, 66, has been asked to depose at the ED headquarters in Delhi as the case has been registered here, sources told news agency PTI.
The agency will record his statement under the Prevention of Money Laundering Act (PMLA) once he deposes, they said.
This comes days after the central probing agency conducted simultaneous raids in connection of financial irregularities and collective loan "diversion" of more than Rs 10,000 crore by multiple group companies of Ambani.
ED sources had said the investigation primarily pertains to allegations of illegal loan diversion of around Rs 3,000 crore, given by the Yes Bank to the group companies of Ambani between 2017-2019.
Officials said that searches were done at over 35 locations in Mumbai, covering 50 companies and 25 individuals under the Prevention of Money Laundering Act (PMLA). A Delhi-based ED unit is spearheading the investigation.
What's the case about?
The agency is probing alleged improper diversion of approximately Rs 3,000 crore in loans, granted by Yes Bank to Ambani's group companies between 2017 and 2019. In reaction to the raids, Reliance Power and Reliance Infrastructure issued clarification letters to the exchanges.
According to officials, multiple agencies, including the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, have shared relevant information with the ED.
Officials told that “ED has found gross violations in Yes Bank loan approvals to RAAGA companies,” including backdated Credit Approval Memorandums, lack of due diligence, and breaches of the bank’s credit policies. The loans were allegedly diverted to multiple group and shell companies.
Red flags identified include loans to entities with weak financials, shared addresses and directors, poor documentation, and evergreening of loans. Officials also noted, “SEBI is also learnt to have shared its findings with ED in the case of RHFL.”
The searches at premises identified with industrialist Anil Ambani have huge financial implications for public money, Rs 20-30,000 crore, which the agency believes has been siphoned off, including outside the country, through "undisclosed foreign bank accounts and foreign assets" created over the years.
A large chunk of the money came to Reliance ADAG from SBI and other public sector banks, besides Yes Bank, then a private entity, and mutual funds.
Preliminary investigation has thrown up a mysterious entity: 'C Company'. The entity, whose existence was not known so far, is allegedly found to have been involved in related party transactions in this whole scam, sources said.
Ambani, 66, has been asked to depose at the ED headquarters in Delhi as the case has been registered here, sources told news agency PTI.
The agency will record his statement under the Prevention of Money Laundering Act (PMLA) once he deposes, they said.
This comes days after the central probing agency conducted simultaneous raids in connection of financial irregularities and collective loan "diversion" of more than Rs 10,000 crore by multiple group companies of Ambani.
ED sources had said the investigation primarily pertains to allegations of illegal loan diversion of around Rs 3,000 crore, given by the Yes Bank to the group companies of Ambani between 2017-2019.
Officials said that searches were done at over 35 locations in Mumbai, covering 50 companies and 25 individuals under the Prevention of Money Laundering Act (PMLA). A Delhi-based ED unit is spearheading the investigation.
What's the case about?
The agency is probing alleged improper diversion of approximately Rs 3,000 crore in loans, granted by Yes Bank to Ambani's group companies between 2017 and 2019. In reaction to the raids, Reliance Power and Reliance Infrastructure issued clarification letters to the exchanges.
According to officials, multiple agencies, including the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda, have shared relevant information with the ED.
Officials told that “ED has found gross violations in Yes Bank loan approvals to RAAGA companies,” including backdated Credit Approval Memorandums, lack of due diligence, and breaches of the bank’s credit policies. The loans were allegedly diverted to multiple group and shell companies.
Red flags identified include loans to entities with weak financials, shared addresses and directors, poor documentation, and evergreening of loans. Officials also noted, “SEBI is also learnt to have shared its findings with ED in the case of RHFL.”
The searches at premises identified with industrialist Anil Ambani have huge financial implications for public money, Rs 20-30,000 crore, which the agency believes has been siphoned off, including outside the country, through "undisclosed foreign bank accounts and foreign assets" created over the years.
A large chunk of the money came to Reliance ADAG from SBI and other public sector banks, besides Yes Bank, then a private entity, and mutual funds.
Preliminary investigation has thrown up a mysterious entity: 'C Company'. The entity, whose existence was not known so far, is allegedly found to have been involved in related party transactions in this whole scam, sources said.
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