New Delhi, Sep 10: The Enforcement Directorate (ED) has widened its money-laundering investigation against industrialist Anil Ambani and his group companies, filing a fresh case against Reliance Communication Limited (RCom) in connection with an alleged Rs 2,929 crore loan fraud with the State Bank of India (SBI). The move signals a deeper scrutiny of Reliance Group’s financial dealings at a time when multiple investigations are already underway, official sources said. This ongoing situation demonstrates how the ED widens probe into serious financial allegations.
As the situation unfolds, it is important to note that the ED widens probe into these serious allegations against Anil Ambani and his companies.
According to officials, the ED has recently filed an Enforcement Case Information Report (ECIR), the agency’s equivalent of a police FIR, taking cognisance of a complaint registered by the Central Bureau of Investigation (CBI) on August 21. Following this, the CBI had carried out searches at the premises of RCom and the Mumbai residence of Anil Ambani on August 23.
Same Accused, Wider ProbeUnderstanding the Implications of the ED Widens Probe
The accused in the new ED case are the same as those named in the CBI’s FIR: Reliance Communication, its director Anil D Ambani, unidentified public servants, and others. The agency has now expanded its investigation to probe all aspects of the alleged fraud, including possible inter-connections with other ongoing cases linked to Ambani’s group companies.
Agency officials said the fresh case is not limited to the SBI loan default but is being examined in the larger context of financial irregularities that have plagued multiple Reliance Group entities. “The investigation will cover diversion of loans, use of shell entities, and cross-linkages between different companies of the group,” a source said.
SBI’s Complaint and Financial Exposure
The SBI complaint, which formed the basis of the CBI’s FIR, stated that Reliance Communication had outstanding dues of more than Rs 40,000 crore to a consortium of lenders. Out of this, SBI alone was exposed to losses of Rs 2,929.05 crore, as per the financial records of 2018.
RCom, once a major telecom player, has faced mounting debt and financial stress over the past decade, eventually sliding into insolvency. Investigators believe a significant part of its borrowings may have been misused or diverted, leading to heavy losses for public sector banks.
Ambani’s Response
Reacting to the CBI action last month, a spokesperson for Anil Ambani had issued a statement asserting that the allegations date back more than a decade. At that time, Ambani was only a non-executive director of RCom and had no role in its daily operations, the spokesperson said.
“It is pertinent to note that SBI, by its own order, has already withdrawn proceedings against five other non-executive directors. Despite this, Mr Ambani has been selectively singled out,” the statement added, describing the action as unfair and disproportionate.
Previous ED Actions
This is not the first time Ambani’s businesses have come under the ED’s radar. In July, the agency conducted searches at the offices of current and former executives of Reliance Group companies. In early August, the ED also questioned and recorded the statement of the 66-year-old businessman in connection with suspected loan diversion and financial irregularities.
The agency’s broader investigation involves alleged loan diversion exceeding Rs 17,000 crore across various Ambani group companies, including Reliance Infrastructure (R Infra). Among the cases under scrutiny is an alleged “illegal” loan diversion of around Rs 3,000 crore given by Yes Bank to Ambani’s companies between 2017 and 2019.
What Lies Ahead
Sources indicated that several present and former executives of the group have already been questioned and more individuals are likely to be summoned. The possibility of Ambani being called again for questioning has not been ruled out.
Officials said the ED will now examine how funds borrowed from banks were utilized, whether there were violations of banking norms, and if public servants were involved in facilitating irregularities. “The focus is to track the money trail and establish whether funds meant for business purposes were diverted to unrelated entities or personal gains,” an official explained.
Broader Context
The case against Anil Ambani and RCom comes at a time when Indian investigative agencies are under pressure to act against large corporate loan defaults that have left banks saddled with non-performing assets (NPAs). With Reliance Communication’s debt exposure running into tens of thousands of crores, the case represents one of the biggest loan default-linked money-laundering probes in recent years.
For Ambani, once among the world’s richest businessmen, the legal troubles mark another chapter in his declining business fortunes. His flagship telecom venture, RCom, once hailed as a rising star in India’s telecom sector, collapsed under debt and intense competition, eventually leading to bankruptcy proceedings.
With the ED’s latest action, the scrutiny around Ambani’s financial dealings is expected to intensify further. Whether the investigation will lead to prosecution or recovery of funds remains to be seen, but the case has already raised questions about accountability in corporate loan defaults and the role of public sector banks in monitoring high-value lending.
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