On Wednesday, Reliance Infrastructure shares dropped over 4% to the day’s low of Rs 267. Meanwhile, Reliance Power shares fell 5% to a low of Rs 43.
In a recent update, the Enforcement Directorate (ED) questioned Reliance Group chairman Anil Ambani on Tuesday as part of its money laundering probe linked to the alleged bank loan fraud.
According to a report by ET Bureau, Ambani has sought seven days to furnish documents about the queries posed to him by the ED
The ED will question Amitabh Jhunjhunwala, a former close aide of Ambani, on Wednesday. On Thursday, it will question another close aide, Sateesh Seth of Reliance Group, the report further said.
Loans to group firms—Reliance Home Finance Ltd, Reliance Commercial Finance Ltd, and Reliance Communications—amounting to around Rs 17,000 crore have reportedly turned into non-performing assets (NPAs), involving nearly 20 lenders.Also Read | JioBlackRock Mutual Fund launches 5 index funds. Should you consider investing in these passive funds?Nearly 20 private and public sector banks had given loans to Anil Ambani’s entities over a period of time, which eventually turned into non-performing assets. Three entities of Reliance Group – Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Ltd. (RCFL), and Reliance Communications (RCom) – were given a total of about Rs 17,000 crore by the banks.
According to data available with the ED, RHFL has an outstanding loan of more than Rs 5,901 crore, while the amount in the case of RCFL is about Rs 8,226 crore and RCom owes nearly Rs 4,105 crore.
Besides YES Bank, the other banks that had given loans to Reliance Group include State Bank of India, UCO Bank, Axis Bank, ICICI Bank, HDFC Bank, Bank of India and Punjab and Sind Bank, the ETBureau report said.
According to SEBI, evidence collected during the investigation indicates that CLE was functionally a related party of R Infra. Documentation cited by the regulator included submissions by CLE to Yes Bank, where it acknowledged Reliance Infra as a promoter. Internal records, such as audit committee meeting minutes, reportedly identified CLE as a “group company.”
Also Read | Sawaliya Food Products IPO to open on August 7, price band set at Rs 114 – Rs 120
Additionally, the regulator found that bank accounts operated by CLE bore email addresses using the “@relianceada.com” domain, which corresponds to the Reliance ADA Group. Statements from key managerial personnel (KMPs) recorded during the probe, along with the fact that several directors and executives of the Reliance Group held positions in CLE, were also cited as supporting evidence.
In the last one month, the shares of Reliance Infrastructure have fallen 28% whereas in the last three months, it has surged nearly 13%.
