The BRICS TimesInvestigation Targets Diversion of Public Funds by Reliance Home and Commercial Finance Firms.
The Enforcement Directorate (ED) has attached 40 properties belonging to the Anil Ambani-led Reliance Group. The assets are valued at approximately ₹3,000 crore. They include the Ambani family’s Pali Hill residence in Mumbai. The Reliance Centre in Delhi is also on the list. This action relates to a money laundering investigation.
Extensive Property Attachments Across Key Cities
The agency attached multiple assets under the Prevention of Money Laundering Act (PMLA). These are spread across Delhi, Mumbai, Pune, Thane, Noida, and Ghaziabad. Hyderabad, Chennai, and East Godavari properties were also seized. The total value of attachments is actually ₹3,084 crore. Seized assets comprise office spaces, residential units, and land. The company has not yet released any public statement.
The Yes Bank-Reliance Loan Connection
The probe focuses on laundering public funds. These funds were raised by Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). Yes Bank invested heavily in these firms between 2017 and 2019. They invested ₹2,965 crore in RHFL and ₹2,045 crore in RCFL. These investments became non-performing by December 2019. The outstanding amounts were ₹1,353.50 crore for RHFL and ₹1,984 crore for RCFL.
Violating SEBI Rules and Fund Routing
Direct investment by Reliance Nippon Mutual Fund was not legally possible. This was due to SEBI’s conflict of interest framework. The money was routed indirectly through Yes Bank’s exposure. It ultimately reached the Anil Ambani Group companies. Funds were routed via Yes Bank’s exposures to RHFL and RCFL. These firms then extended loans to linked group entities.
Major Control Failures and Funds Siphoning
ED’s fund tracing exposed a systematic diversion and siphoning of funds. Corporate loans meant for general purposes landed in Reliance group companies’ accounts. ED found serious and consistent control failures when loans were issued. Loans to connected firms were processed very quickly. Many loans got application, sanction, and agreement on the same day. In some cases, money was disbursed even before sanction.
Intentional Lapses in Loan Processing
Investigators found that funds were advanced before the loan application. This suggests impossible processing speed. Field investigations and personal checks were simply waived. Documents often remained blank, overwritten, or undated. Many borrowers had weak financials or negligible operations. Security for loans was inadequate or unregistered. The end use of funds often failed to match sanction conditions. These were intentional control failures, the ED confirmed.
RCOM Probe and Public Recovery
The agency is also intensifying its investigation into Reliance Communications Ltd. (RCOM). This covers an alleged loan fraud and related companies. These companies allegedly diverted over ₹13,600 crore. This amount was used for evergreening existing loans. Over ₹12,600 crore went to connected parties. Roughly ₹1,800 crore was put into FDs/MFs and later rerouted. ED also detected major misuse of bill discounting. This funneled funds to connected parties. ED will continue to secure property attachments. Any recoveries will ultimately benefit the public.
