ED Charges Anil Ambani Group Firms in Money Laundering Cases

The Enforcement Directorate (ED) has filed chargesheets in two separate money-laundering cases against companies and former executives of the Reliance Anil Ambani Group (RAAG). Notably, the agency has not named Anil Ambani himself in these complaints.

These cases detail significant financial diversions and alleged fraudulent activities across different entities within the group. The investigations highlight complex schemes involving public funds and credit facilities.

Allegations Against Reliance Infrastructure

The first prosecution complaint targets Reliance Infrastructure Limited and former executive Sateesh Seth, stemming from a Mumbai Police Economic Offences Wing (EOW) FIR. This case involves the alleged diversion of public funds from National Highways Authority of India (NHAI) toll-road projects.

• Approximate diversion: Rs.187 crore
• Projects involved: Trichy-Karur, Trichy-Dindigul, Salem-Ulundurpet, and Jaipur-Reengus toll roads.
• Timeline: September-October 2010.
• Attached assets: Immovable assets and equity shares of Reliance Power Limited held by Reliance Infrastructure, and land of Ksheeraabd Constructions, all valued at Rs.187 crore.

The ED’s probe identified an “organised scheme” where funds were allegedly siphoned through sham, post-facto, or back-dated arrangements for fictitious sub-contracting work. These funds moved from Reliance Infrastructure or its special purpose vehicles to contractors, then to shell entities with no connection to road construction. Documents were later created to falsely present these transfers as genuine project expenditures, with funds layered through shell entities and diamond traders.

Credit Facility Diversions at Reliance Communications

The second case involves a supplementary chargesheet filed against Reliance Communications Limited (RCOM), Reliance Telecom Limited (RTL), and former RAAG executives Seth, Gautam Doshi, and Amitabh Jhunjhunwala. This investigation originated from multiple CBI FIRs concerning the alleged diversion of credit facilities.

• Proceeds of crime quantified: Rs.40,185 crore.
• Attached assets: Rs.8,078 crore.
• Arrests: Sateesh Seth in June and Gautam Doshi in July, both currently in judicial custody.

The ED’s investigation revealed that “fresh credit facilities were repeatedly used fraudulently to repay, rotate and evergreen earlier domestic and foreign liabilities instead of the sanctioned end-use.” Funds were layered through group companies, purpose-built conduit entities, multiple bank accounts, and liquid mutual funds. These funds were used to service earlier External Commercial Borrowings (ECBs) and Foreign Currency Convertible Bonds (FCCBs), and were projected as legitimate business expenditure or receipts.

Loan proceeds were allegedly diverted to other group companies like Reliance Infrastructure Limited and Reliance Capital Limited. The ED further claims funds were siphoned off to purchase personal assets for promoters outside India and to artificially inflate profits for RCOM.