NEW DELHI: Reliance Group chairman Anil Ambani, who appeared before the Enforcement Directorate on Tuesday to record his statement under provisions of the Prevention Money Laundering Act (PMLA) in cases linked to alleged large-scale bank loan frauds worth Rs 17,000 crore by his group companies, is likely to be summoned again after a week, officials said.
Sources in the know of the deposition said that during the course of questioning Ambani claimed that he was not aware of various transactions relating to the loan fraud case, which the ED investigators put to him.
He said that he needed to check the details and respond accordingly, they said, adding that his two key executives, Amitabh Jhunjhunwala and Sateesh Seth, are also going to be questioned later this week.
The massive Rs 17,000-crore loan default has once again brought the spotlight on some of the largest corporate loan frauds in India’s recent history, which highlights persistent challenges in bank loan recoveries and corporate governance.
Ambani, 66, arrived at the ED’s office in central Delhi around 11 am to record his statement under the PMLA. ED’s summons to Ambani followed the agency’s searches at 35 premises belonging to 50 companies and 25 individuals, including senior executives of his business group, in Mumbai and Delhi on 24 July.
The investigation centres on alleged financial irregularities and the diversion of over Rs 17,000 crore in bank loans by several Anil Ambani group entities, including Reliance Infrastructure (R Infra).
One key allegation involves the diversion of approximately Rs 3,000 crore in loans granted by Yes Bank between 2017 and 2019. Sources said the ED is probing a possible quid pro quo arrangement, where Yes Bank promoters allegedly received money in their companies shortly before the loans were sanctioned.
Loans were allegedly channeled into group companies and shell entities, with some borrowers sharing common addresses and directors, weak financials, or lacking proper documentation.
The ED’s case under PMLA is based on two FIRs filed by the CBI and reports submitted by regulatory bodies such as SEBI, the National Housing Bank, the National Financial Reporting Authority, and the Bank of Baroda.
