Enforcement Directorate Provisionally Attaches Reliance Infrastructure Assets Worth Rs 4,462 Crore

Enforcement Directorate Attaches Reliance Infrastructure Land in Money Laundering Probe

The Enforcement Directorate (ED) has taken a significant step by provisionally attaching assets belonging to Reliance Infrastructure Limited. The attached assets include a large parcel of land measuring over 132 acres located at the Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai, with an estimated value of Rs 4,462.81 crore. This action is reportedly connected to ongoing investigations into alleged bank fraud and money laundering activities involving other entities of the Anil Ambani Group, specifically Reliance Communications Limited (RCOM), Reliance Commercial Finance Limited, and Reliance Home Finance Limited.

The ED stated that these attachments are part of a broader probe based on a Central Bureau of Investigation (CBI) First Information Report (FIR) against RCOM and Anil Ambani. The investigation alleges that group companies obtained loans exceeding Rs 40,000 crore between 2010 and 2012, with a portion of these funds allegedly diverted for 'loan evergreening', related-party transactions, and unauthorized foreign remittances. With this latest attachment, the total value of assets seized or attached in cases linked to the Anil Ambani Group has now surpassed Rs 7,500 crore.

Impact Despite the substantial value of the attached assets, Reliance Infrastructure Limited issued a statement asserting that this development has "no impact" on its ongoing business operations, its shareholders, employees, or any other stakeholders. The company also highlighted that Mr. Anil D Ambani has not served on its Board for over three and a half years, distancing him from current directorship. The ED, however, continues its efforts to recover proceeds of crime and ensure restitution to legitimate claimants. This news could affect investor sentiment towards the company and potentially other Anil Ambani Group entities, even with the company's assurances. Rating: 6/10.

Terms: Prevention of Money Laundering Act (PMLA): A stringent Indian law enacted to prevent money laundering activities and to provide for the confiscation of property which has been tainted by criminal process. Enforcement Directorate (ED): A law enforcement agency and economic intelligence agency responsible for enforcing economic laws and fighting economic crime in India. Central Bureau of Investigation (CBI): India's premier investigative agency, responsible for investigating crimes like corruption, fraud, and other serious offences. First Information Report (FIR): A report lodged with a police station or other law enforcement agency by someone who knows of the commission of a cognizable offense, detailing the circumstances of the offense. Loan Evergreening: A fraudulent practice where a lender issues a new loan to a borrower to pay off an existing loan, making the borrower appear solvent and masking the deteriorating financial health of the borrower or the loan portfolio. Provisional Attachment: A temporary order issued by an authority like the ED to prevent an asset from being transferred, sold, or disposed of, pending a final decision in a case.