Anil Ambani Summoned by ED in Rs 17,000 Crore Loan Fraud Case To Appear before ED on August 5

Reliance Group Chairman and Managing Director Anil Ambani has been summoned by the Enforcement Directorate (ED) for questioning in connection with an alleged Rs 17,000 crore loan fraud case. He has been asked to appear before the agency at its New Delhi headquarters on August 5.

The summons comes just a week after the ED conducted extensive raids at approximately 35 locations in Mumbai linked to the Reliance Group as part of its money laundering investigation under the Prevention of Money Laundering Act (PMLA). The searches covered about 50 companies and 25 individuals.

The ED’s probe is based on findings shared by the Securities and Exchange Board of India (Sebi). A Sebi report alleged that Reliance Infrastructure (R Infra) had diverted around Rs 10,000 crore through a company named CLE Pvt Ltd, which was not disclosed as a related party. The market regulator claimed this diversion was disguised as inter-corporate deposits (ICDs) and was used to route large sums without proper disclosure, ultimately benefiting the promoter group.

According to Sebi’s investigation, which covered transactions from FY16 to FY23, R Infra continued to provide advances to CLE despite its limited repayment capacity. The report states that R Infra’s total dealings with CLE amounted to Rs 8,302 crore as of March 31, 2022, and that between 25% and 90% of R Infra’s total assets were routed to CLE between FY13 and FY23.

A source close to the Reliance Group has disputed Sebi’s findings, claiming the exposure was only Rs 6,500 crore, not Rs 10,000 crore. The source argued that Reliance Infrastructure had publicly disclosed the matter on February 9 and that recovery proceedings are already pending before the Bombay High Court. They also questioned how a diversion of Rs 10,000 crore was possible when the total exposure was lower.

Sebi’s report, however, cites bank records, board meeting minutes, and official email IDs to establish that CLE was a group company of Reliance Infrastructure. It alleged that R Infra deliberately avoided declaring CLE as a related party to bypass the need for mandatory audit and shareholder approvals for the transactions.