Reliance Group Stocks Tumble Amid Rs 17,000 Cr Loan Fraud Probe

Reliance Infra and Reliance Power shares have tumbled up to 19% over the past six trading sessions amid an ongoing investigation into an alleged Rs 17,000 crore loan fraud involving the Anil Ambani-led companies. The Enforcement Directorate (ED) questioned Reliance Group chairman Anil Ambani as part of its money laundering probe linked to the alleged bank loan fraud.

Shares of Reliance Infrastructure and Reliance Power have tumbled up to 19% over the past six trading sessions amid an ongoing investigation into an alleged Rs 17,000 crore loan fraud involving the Anil Ambani-led companies. The Enforcement Directorate (ED) questioned Reliance Group chairman Anil Ambani as part of its money laundering probe linked to the alleged bank loan fraud.

On Wednesday, Reliance Infrastructure shares dropped over 4% to the day’s low of Rs 267, while Reliance Power shares fell 5% to a low of Rs 43. The investigation, launched under the Prevention of Money Laundering Act (PMLA), involves loans taken from nearly 20 public and private sector banks. Three entities of Reliance Group—Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Ltd. (RCFL), and Reliance Communications (RCom)—were given a total of about Rs 17,000 crore by the banks.

According to data available with the ED, RHFL has an outstanding loan of more than Rs 5,901 crore, while the amount in the case of RCFL is about Rs 8,226 crore and RCom owes nearly Rs 4,105 crore. The ED will question Amitabh Jhunjhunwala, a former close aide of Ambani, on Wednesday, and Sateesh Seth of Reliance Group on Thursday.

The probe has raised concerns among investors about the financial health and future prospects of Reliance Group companies. The tumbled shares reflect the market’s response to the ongoing investigation and the potential impact on the group’s financial standing.

References:

[1] https://economictimes.indiatimes.com/news/company/corporate-trends/ed-questions-anil-ambani-in-rs-17000-cr-loan-fraud-probe/articleshow/123126350.cms
[2] https://m.economictimes.com/markets/stocks/news/reliance-infra-reliance-power-sink-up-to-19-in-6-sessions-amid-rs-17000-cr-loan-fraud-probe/articleshow/123135450.cms