New Delhi [India], August 1 The Enforcement Directorate (ED) has summoned industrialist Anil Ambani for questioning in connection with an ongoing investigation into an alleged Rs 17,000-crore loan fraud case, official sources said on Friday.
Ambani has been directed to appear before investigators at the ED headquarters in New Delhi on August 5 in connection with the probe pertaining to suspected financial irregularities and possible violations under the Prevention of Money Laundering Act (PMLA).
The agency is examining the role of various entities and individuals linked to the case, and Ambani's statement is expected to play a crucial role in the investigation.
The move comes almost a week after the ED launched a massive search operation at 35 premises, 50 companies and over 25 persons linked to a money laundering case against Reliance Anil Ambani Group (RAAGA) Companies. The raids were carried out on July 24. The action followed an investigation launched by the ED under the offence of money laundering by RAAGA companies, subsequent to the recording of a First Information Report by the Central Bureau of Investigation.
As per the officials, ED's investigations are based on information shared with the agency by other agencies and institutions such as the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA), and Bank of Baroda.
"Preliminary investigation by ED has revealed a well-planned and thought after scheme to divert and siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials, including the promoter of Yes Bank Limited, is also under scanner," officials, privy to the development, told ANI.
Preliminary investigation reveals illegal loan diversion of around Rs 3,000 crores from Yes Bank (period 2017 to 2019).
ED then said it had found that "just before the loan was granted, the Yes Bank promoters received money in their concerns."
"ED is investigating this nexus of bribe and the loan."
"ED has found gross violations in Yes Bank loan approvals to RAAGA companies, such as, Credit Approval Memorandums (CAMs) were back-dated, Investments were proposed without any due diligence and credit analysis in violation of the Banks Credit Policy inter alia," said the officials.
In violation of the loan terms, the officials said, these loans were further diverted to many group companies and shell companies.
"Some red flags found by ED include- loans given to entities with weak financials, no proper documentation of loans, no due diligence, borrowers have common addresses, and common directors etc., diversion of loans to promoter group entities, ever greening of GPC loans, loans onward lent on same date, loans disbursed on same date as date of application, loans disbursed prior to sanction, Misrepresentation of financials," the officials said.
It is also informed that "Securities and Exchange Board of India (SEBI) is also learnt to have shared its findings with ED in the case of RHFL."
"Dramatic increase in corporate loans by RHFL, from Rs 3,742.60 crore in Financial Year 2017-18 to Rs 8,670.80 crore in Financial Year 2018-19 is also under ED lens. Issues of irregular and expedited approvals, process deviations, and many other illegalities have been found," added the officials.
As per officials, Reliance Communications Ltd has also committed a loan fraud of over Rs 14,000 crores.
"Bank of India (SBI) had classified Reliance Communications (RCom) and its promoter, Anil Ambani, as 'fraudulent' in accordance with RBI guidelines. SBI reported this classification to the RBI and is preparing to file a complaint with the Central Bureau of Investigation (CBI)," officials said.
It is also informed that "Reliance Communications Ltd has also cheated Canara Bank of more than Rs 1,050 crores."
"Undisclosed Foreign Bank Accounts and Foreign Assets are also being investigated. Investigations are likely to reveal more," said the officials.
It has also found that "Reliance mutual fund invested Rs 2,850 crore in AT-1 bonds of YES Bank (perpetual FDs) for suspected quid pro quo." "These bonds were eventually written down, money siphoned off. This was the money of the public, the mutual fund investors. CBI is also investigating this issue," said the officials.
Furthermore, based on information received from SEBI, ED said it has found that Reliance Infra has diverted a large sum of money disguised as ICDs to Group Companies of RAAGA through C Company, an undisclosed related party company. Reliance Infra did not disclose C Company as its related party in order to avoid proper approval from the shareholders and the audit committee.
"It was also hidden presumably to circumvent checks and balances imposed on related party transactions as per laws," said the officials.
It has been found that "R Infra has taken a haircut of Rs 5,480 crore and only Rs 4 crore has been received in cash."
"Remaining Rs 6,499 crores has been settled in the form of assignment, transfer of assets and economic rights mainly in certain discoms. These discoms don't have any business for previous many years and are not operational. Therefore, there are zero chances of recovery of this amount. The loan diversion in this case is over Rs. 10,000 crores," the official said.