Reliance Group Firms Say Enforcement Directorate Searches Concluded, Reiterate Cooperation.

Reliance Group companies, RInfra and RPower, have stated that Enforcement Directorate (ED) searches have concluded and that they will continue to cooperate with the agency. The companies said the action has no impact on their business operations, which are separate from Reliance Communications and Reliance Home Finance, which are undergoing insolvency proceedings.

The Enforcement Directorate (ED) has concluded its searches on Reliance Group companies, including Reliance Infrastructure (RInfra) and Reliance Power (RPower), after a three-day probe. The ED action was part of a broader investigation into alleged money laundering-linked bank loan fraud [1]. The companies have stated that the ED's search operations have no impact on their business operations, financial performance, shareholders, employees, or other stakeholders [2].

Reliance Power and Reliance Infrastructure issued joint statements confirming the completion of the ED's action and their full cooperation with the authorities. They also emphasized that the probe pertains to older allegations involving Reliance Communications (RCom) and Reliance Home Finance Limited (RHFL), which are not linked to their operational structure [2]. Both companies are independent listed entities with no business or financial connections to RCom or RHFL [2].

The ED's investigation is based on reports from the National Housing Bank, Securities and Exchange Board of India (SEBI), National Financial Reporting Authority (NFRA), and Bank of Baroda, which indicate a "well-planned and thought-out scheme" to siphon off public funds through fraudulent means [1]. The companies undergoing insolvency proceedings, RCom and RHFL, have been accused of loan fraud and money laundering [3].

The State Bank of India (SBI) has classified RCom and Anil Ambani as "fraudulent" and is preparing to file a formal complaint with the Central Bureau of Investigation (CBI) [3]. The ED is also probing allegations of "gross violations" in loan approvals, including back-dated credit approval memorandums and investments without due diligence [1].

References:
[1] https://www.republicworld.com/business/ed-raids-anil-ambanis-reliance-group-yes-bank-for-third-straight-day-money-laundering-probe-intensifies
[2] https://www.financialexpress.com/business/industry-reliance-infra-power-confirm-all-ed-raids-have-concluded-fully-cooperated-and-will-continue-to-3928035/
[3] https://m.economictimes.com/news/company/corporate-trends/anil-ambanis-reliance-communications-loan-fraud-totals-rs-14000-crore-sources/articleshow/122878889.cms