Reliance Comm. Bank Fraud: ED Seizes ₹4,462 Crore Dhirubhai Ambani Knowledge City Land
The ED’s probe revealed large-scale diversion and misuse of ₹40,000 crore in loans by RCom and its group companies through evergreening, fund transfers to related parties, and overseas remittances
Dhirubhai Ambani
Dhirubhai Ambani
The Enforcement Directorate (ED) has provisionally attached over 132 acres of land belonging to the Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai, Maharashtra, valued at more than ₹4,462 crore, in connection with the bank fraud case involving Reliance Communications Ltd (RCOM).
With this attachment, the total cumulative attachment of assets across the Reliance Group entities has reached ₹7,545 crore.
According to the ED, the attachment was made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The investigation started from a CBI FIR registered against Reliance Communications Ltd., Anil Ambani, and others under sections 120-B, 406, and 420 of the Indian Penal Code, along with relevant provisions of the Prevention of Corruption Act.
The FIR alleged large-scale financial irregularities and diversion of loan funds by the Reliance Group companies.
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“RCOM and its group companies availed loans from domestic and foreign lenders from the period of 2010-2012 onwards, of which a total amount of Rs.40,185 crores is outstanding,” stated ED in its press release.
The investigation revealed that loans taken from one bank were often diverted to repay loans of other group entities, transferred to related parties, or invested in mutual funds all in violation of the terms and conditions of the loan sanction letters.
The agency found that over ₹13,600 crore was diverted for evergreening loans, ₹12,600 crore was routed to connected parties, and around ₹1,800 crore was invested in fixed deposits and mutual funds, which were later liquidated and rerouted back to group entities.
The ED also detected large-scale misuse of bill discounting mechanisms to funnel funds to related companies and noted that certain loan amounts were siphoned off abroad through outward remittances.
Further investigation in the matter is ongoing.
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