New Delhi: Industrialist Anil Ambani on Tuesday appeared before the Directorate of Enforcement (ED) in connection with an alleged fund diversion case, two people aware of the development said.
The agency, which probes money laundering and violations of foreign exchange laws, is investigating an alleged diversion of funds from Reliance Infrastructure to a related party without adequate disclosures. The company had last week said this exposure was of ₹6,500 crore and that it had disclosed this matter in February itself.
Reliance Infrastructure maintains it has diligently pursued recovery of its dues in this matter, and through mandatory mediation proceedings conducted by a retired Supreme Court Judge and the mediation award filed before the Bombay High Court, the company had arrived at a settlement to recover its exposure of ₹6,500 crore.
Anil Ambani has not been on the board of Reliance Infrastructure since March 2022.
Queries emailed to Anil Ambani’s Reliance Group and to the finance ministry on Tuesday, seeking their comments on the latest development remained unanswered at the time of publishing this report.
Broader investigation underway
News agency ANI reported that Ambani was asked to appear before investigators in connection with a probe on suspected financial irregularities and possible violations under the Prevention of Money Laundering Act. The probe agency is looking into the role of various entities and individuals linked to the case, ANI reported.
In May 2020, the ministry of corporate affairs had referred the issue of Price Waterhouse & Co Chartered Accountants LLP’s (PW) resignation as auditors of some of the group companies without giving an audit report for FY19, to the National Financial Reporting Authority (NFRA).
NFRA had looked into the audits done by the auditors appointed subsequently in the case of Reliance Home Finance Ltd, Reliance Commercial Finance Ltd and Reliance Capital Ltd, and penalised the auditors for alleged professional misconduct, the authority's orders showed.
Reliance Infrastructure provides engineering and construction services for power, roads, metro rail and other infrastructure sectors. It is also engaged in implementation, operation and maintenance of several projects in the defence sector and infrastructure areas through its special purpose vehicles, the company said on its website.
It had executed the Mumbai Metro line one project and is also a utility company having presence across the value chain of energy businesses, the company said.
The ED had earlier issued a lookout circular against Ambani and had sought his presence for recording his statement under the PMLA, Hindustan Times had reported on 1 August.
The financial crime probe agency had also carried out searches at the premises of several group companies and people, including senior executives of Reliance Anil Dhirubhai Ambani Group companies, the report said.
