ED Probe Into Anil Ambani Group Is Creating Loathsome Sensation

(MENAFN- The Arabian Post)

By Nantoo Banerjee

The regular news feed by India's Enforcement Directorate on alleged massive money laundering by the Reliance Anil Ambani Group (RAAG), which is also known as the Anil Dhirubhai Ambani Group (ADAG), seems to have been designed more to create an abominable sensation around the flamboyant entrepreneur than any other serious purpose. The ED probe also covers several associated entities as part of its crack down on large-scale loan frauds. Is the purpose of the widely publicized ED probe meant to merely tarnish the image of Anil Ambani and his aggressive, cunning, or even somewhat immoral method of managing business, or to genuinely fix him for his financial misadventures using large public funds?

Has any bank or lender lodged an FIR against the group listing the details behind the criminal intent of the business group's financial fraud? Or, has the ED opened the case on the basis of its own suspicion? If the ED has strong reasons behind its suspicion, why is it not arresting Anil Ambani? Else, it must stop regular media feeding on the progress of the investigation.

Under the Prevention of Money Laundering Act (PMLA), the ED has the power to arrest individuals based on“reasons to believe” that they have committed a PMLA offence, which must be recorded in writing. The ED has to inform the arrested person or persons of the grounds for arrest as soon as possible. Under the law, a copy of the arrest order and related materials has to be forwarded to the adjudicating authority. The arrested person must be produced before a special court or magistrate within 24 hours.

The ED has recently arrested one Partha Sarathi Biswal, managing director of little-known Biswal Tradelink Private Limited (BTPL), the first such arrest in the alleged Rs. 3,000-crore loan fraud case against the Anil Ambani group. The main allegation against Biswal is that his firm allegedly received Rs 5.4 crore from Anil Ambani-owned Reliance Power for arranging fake bank guarantees worth Rs 68.2 crore. The case involves money laundering, forged SBI endorsements, and fabricated emails linked to a tender floated by the government-owned Solar Energy Corporation of India (SECI). Anil Ambani's net worth is currently estimated at $1 Billion as of June 26, 2025.

The financial trail is an important element linking BTPL's fraudulent operations to Ambani's corporate network. According to media reports, the ED investigation has further revealed that BTPL maintained multiple undisclosed bank accounts and carried out financial transactions that were grossly disproportionate to its reported turnover. Authorities have traced proceeds of the crime running into crores of rupees across at least seven hidden bank accounts. The investigative agency claimed that statutory records, including books of accounts and shareholder registers, were missing from the company's registered office. The ED suspects the use of dummy directors to mask true ownership and enable the laundering of funds. In response, the Anil Ambani group said that all its subsidiaries acted bona fide and were victims of fraud, forgery, and a cheating conspiracy. Last week, the ED had summoned Anil Ambani for questioning in connection with the case. The question is: if he is the prime suspect why is he not being arrested? Or, why are his assets still not attached?

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Nearly three years ago, in a written response to the Rajya Sabha on the increasing incidence of such frauds, the government disclosed that the ED's investigation was linked to two cases registered by the CBI in September 2022. The ED initiated its investigation through an Enforcement Case Information Report (ECIR) on July 22, targeting multiple entities and individuals, including Reliance Home Finance Ltd. (RHFL), Reliance Commercial Finance Ltd. (RCFL) & former Yes Bank MD and CEO Rana Kapoor, among others. The details shared in Parliament showed RHFL and RCFL disbursed loans totalling Rs 12,524 crore, a significant portion of which was extended to entities classified as either shell companies or closely linked affiliates of ADAG group firms. What is the progress of this case? Investors in the ADAG group of companies may be interested to know more on any new development in this matter rather than another fresh ED investigation in another case.

Meanwhile, there are other reports which suggest that the ADAG group's Reliance Infrastructure recently reached a significant milestone by reducing its standalone net debt to zero. This was accomplished by clearing approximately Rs 3,300 crore of debt from banks and financial institutions during FY25. While Reliance Communications, another ADAG company, has also been reducing its debt, it still has a large amount outstanding. Reliance Comms reported a total financial indebtedness of Rs.40,413 crore as of March 31, 2025, according to a regulatory filing with the stock exchanges. This amount excludes accrued interest and NCD interest. Enigmatic Anil Ambani continues to grow despite these debts and several alleged financial wrongdoings over the years seemingly with patronage from the government and nationalised banks.

During the current year, the ADAG is actively involved in several key projects, primarily focused on renewable energy and defence sectors. Reliance Power is expanding its solar and battery storage capacity, including a large project in partnership with SECI. Reliance Infrastructure is strengthening its presence in defence manufacturing and aerospace, with partnerships for aircraft maintenance, repair, and overhaul, and munition production. Reliance NU Suntech, a Reliance Power subsidiary, signed a 25-year power purchase agreement (PPA) with SECI, a Navaratna company, for a large-scale solar and battery energy storage project.

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The project, involving 930 MW of solar power and a 465 MW/1,860 MWh battery energy storage system, will be Asia's largest integrated solar facility. It will be developed within 24 months with an investment of up to Rs 100 billion. With the ADAG under the ED attack, how is that the government or the SECI finds it safe to go with an Anil Ambani firm to set up such a prestigious project? Further, the Anil Ambani group has partnered with Bhutan's Druk Holding and Investments to develop a 500-MW solar plant and 770-MW Chamkharchhu-1 hydroelectric project.

Hopefully, the Anil Ambani group's latest initiatives in the defence and aerospace sectors enjoy the government's blessings. The group's Reliance Infrastructure has partnered with France's Dassault Aviation for aircraft manufacturing and Coastal Mechanics for maintenance, repair, and operations. The company has also collaborated with Germany's Rheinmetall AG to produce artillery ammunition and explosives. Its strategic partnership with another leading German defence firm, Diehl Defence GmbH, focuses on guided munition and terminally guided munition (TGM).

Anil Ambani has launched the Reliance Group Corporate Centre as part of the group's 2030 growth strategy. It is intended to guide the group companies in pursuing new opportunities and technological advancements, leveraging the expertise of seasoned leaders. Could the various ED probes into some of the ADAG enterprises be linked with corporate rivalry? In the past, several Indian industrial groups, including the Tatas and Essar, led by the Ruia brothers, Ravi and Sashi, were believed to have been victims of corporate rivalry.

It is time that the government restrains the ED from making motivated media leaks of its investigations before it files a chargesheet against the accused. While the judicial conviction rate of the ED's chargesheets against accused is abysmally low, its hyper media trial during investigations tends to destroy the image and business prospects of its victims. Last week, a three-judge bench of the Supreme Court of India lambasted the ED's approach to PMLA investigations, cautioning the agency to act“within legal boundaries.” Justice Ujjal Bhuyan, one of the judges, said:“You can't act like a crook. You have to act within the four corners of the law.” On the face of it, the detestable routine media leaks of the ED's ongoing investigations into the Anil Ambani group would appear to be repugnantly hateful. The government must act against its probe agency to stop such media campaigns during investigations. (IPA Service )

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