The Enforcement Directorate has informed the Rajya Sabha that it has launched a probe under the Prevention of Money Laundering Act into suspected loan frauds by Reliance Home Finance Ltd. and Reliance Commercial Finance Ltd. The investigation is based on two FIRs filed by the Central Bureau of Investigation.
Loan Amounts and Non-Performing Assets
Loans amounting to Rs 12,524 crore were extended by RHFL and RCFL, with the majority disbursed to firms linked to the Reliance Anil Ambani Group. Of this, loans worth Rs 6,931 crore have been declared non-performing assets.
Circular Lending Concerns
Preliminary findings suggest the funds were routed back to other companies within the Reliance group, raising concerns of “circular lending.” Yes Bank’s Rana Kapoor played a key role in sanctioning these loans, the ED said, adding that his family-linked firms RAB Enterprises, Imagine Estates, and Bliss House also received credit facilities.
Significant Fund Diversion and Violations
An audit by Grant Thornton has flagged significant fund diversion and violations of lending policies. So far, the ED has conducted searches across 60 companies and 22 individuals, with the probe currently underway.
State Bank of India’s Declaration
In June this year, the State Bank of India declared Reliance Communications and its promoter Anil Ambani’s account as ‘fraud’, notifying the Reserve Bank of India and filing a complaint with the CBI. Investigators have since seized documents and digital records from group offices in Mumbai and Delhi as part of a wider probe into suspected misuse of public funds through a network of shell companies.
SEBI’s Action
Earlier, the Securities and Exchange Board of India had barred Anil Ambani and several senior group executives from the securities markets for five years and imposed a monetary penalty for alleged diversion of funds from Reliance Home Finance.
