Anil Ambani appears before ED in bank loan 'fraud' linked PMLA case
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New Delhi (PTI): Reliance Group Chairman Anil Ambani on Tuesday appeared before the Enforcement Directorate here for questioning in a money laundering case linked to alleged multiple bank loan fraud cases worth crores of rupees against his group companies, official sources said.
He reached the office of the central probe agency in central Delhi around 11 am.
The ED will record the statement of the 66-year-old businessman under the Prevention of Money Laundering Act (PMLA).
The summons come after the agency conducted searches at 35 premises of 50 companies and 25 people, including executives of his business group, in Mumbai on July 24.
The action pertains to alleged financial irregularities and collective loan "diversion" pegged at more than Rs 17,000 crore by multiple group companies of Anil Ambani, including Reliance Infrastructure (R Infra).
The first allegation pertains to "illegal" loan diversion of around Rs 3,000 crore, given by the Yes Bank to the group companies of Ambani between 2017 and 2019.
The ED suspects, the sources said, that just before the loan was granted, Yes Bank promoters "received" money in their companies.
The agency is investigating this nexus of "bribe" and the loan.
The sources said the ED is also probing allegations of "gross violations" in Yes Bank loan approvals to these companies, including charges such as back-dated credit approval memorandums and investments proposed without any due diligence/credit analysis in violation of the bank's credit policy.
The loans are alleged to have been "diverted" to many group companies and "shell" (bogus) companies by the entities involved.
The agency is also looking at some instances of loans given to entities with weak financials, a lack of proper documentation of loans and due diligence, borrowers having common addresses and common directors in their companies, etc., according to the sources.
The money laundering case stems from at least two CBI FIRs and reports shared by National Housing Bank, SEBI, National Financial Reporting Authority and Bank of Baroda with the ED, they had said.
These reports, the sources said, indicate there was a "well-planned and thought after scheme" to divert or siphon off public money by cheating banks, shareholders, investors and other public institutions.
The other allegation being probed by the ED, on the basis of a SEBI report, is that R Infra "diverted" funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company named CLE. It is alleged that R Infra did not disclose CLE as its "related party" to avoid approvals from shareholders and audit panels.
A Reliance Group spokesperson had denied any wrongdoing and said in a statement that the allegation regarding alleged diversion of Rs 10,000 crore to an undisclosed party was a 10-year-old matter and the company had stated in its financial statements that its exposure was only around Rs 6,500 crore.
Reliance Infrastructure had publicly disclosed this matter on February 9, 2025, nearly six months ago, the statement said.
"Through mandatory mediation proceedings conducted by a retired Supreme Court judge and the mediation award filed before the Hon'ble Bombay High Court, Reliance Infrastructure arrived at a settlement to recover its 100 per cent exposure of Rs 6,500 crore," it said.
The company added that Ambani was not on the board of R Infra since more than three years (March 2022).
The Union government had informed Parliament recently that the State Bank of India has classified RCOM along with Ambani as "fraud" and was also in the process of lodging a complaint with the CBI.
A bank loan "fraud" of more than Rs 1,050 crore between RCOM and Canara Bank is also under the ED scanner, apart from some "undisclosed" foreign bank accounts and assets, the sources said.
Reliance Mutual Fund is also stated to have invested Rs 2,850 crore in AT-1 bonds, and a "quid pro quo" is suspected here by the agency.
Additional Tier 1 (AT-1) are perpetual bonds issued by banks to increase their capital base, and they are riskier than traditional bonds, having higher interest rates.
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Karnataka Lokayukta to register case, probe Bowring wall collapse
Bengaluru (PTI): Karnataka Lokayukta Justice B S Patil on Thursday took serious note of the compound wall collapse at Bowring and Lady Curzon Hospital in the city that killed seven people, and announced registration of a case on its own while warning of action against officials found responsible.
The Lokayukta, who visited the site and conducted an inspection, expressed strong displeasure over the incident and questioned the inaction of authorities, even as police and emergency teams had earlier rushed to the spot to rescue victims trapped under the debris following heavy rain, strong winds and a hailstorm on Wednesday evening.
“I will now register a suo motu case. This is not just about this one incident — such incidents must not occur anywhere in the state or the city in the future,” Justice Patil told reporters.
Seven people, including a six-year-old girl, were killed and seven others injured when the compound wall collapsed as rain-battered victims had taken shelter near it, according to police. The victims included people from Kerala who were in the city on a study tour.
Calling for systemic accountability, the Lokayukta said, “Dilapidated buildings and weakened compound walls, especially in areas with public access, must first be identified. They must either be repaired, demolished, or rebuilt.”
He added that responsibility would be fixed on officials of the BBMP and the concerned departments.
Justice Patil said that hearings would be conducted and preventive action initiated, while also probing those responsible for it, how the incident could have been prevented, and why it was not prevented.
A Scene of Crime Officers (SOCO) team and a Forensic Science Laboratory (FSL) team also inspected the site, while police cordoned off Kovil Street to facilitate the probe.
Deputy Chief Minister D K Shivakumar said the government had initiated measures following the rain-related incidents and stressed preparedness.
“Since last night we have initiated measures regarding the rains. When it rains heavily, we must be prepared, and we are working towards that,” he told reporters here.
On the wall collapse, Shivakumar said, “I will not directly blame any officials. It was an old wall, and trees had grown alongside it. Due to that pressure, it collapsed.”
The Deputy CM said instructions had been issued to identify such vulnerable structures and clear areas around them, including relocating street vendors.
Karnataka Medical Education Minister Sharan Prakash Patil said a technical assessment had been ordered.
“This is a very serious matter. Innocent people have been affected. We are issuing directions to the engineers to find out why this compound wall collapsed and to assess its structural strength,” he told reporters after inspecting the spot.
The Minister noted that the wall was ‘very old’ and required thorough examination to prevent recurrence.
Speaking to reporters, Congress president Mallikarjun Kharge asked the Karnataka government to take precautions to ensure that incidents like the collapse of the Bengaluru government hospital compound wall, which caused loss of life, should not repeat.
Meanwhile, addressing a press conference, Shivajinagar MLA Rizwan Arshad said the collapse raised questions about construction and maintenance practices.
“If a wall collapses within 25 years of its construction, it needs to be examined -- whether there was any technical issue, or if anything was altered inside, weakening it. All this can only come out through a technical investigation,” he said.
The Congress MLA also called for wider structural audits across the city, stating that all such structures, whether private or government, must be audited.
He urged citizens to support victims, saying it was a collective responsibility in times of crisis.
