New Delhi [India], July 24 : The Enforcement Directorate (ED) on Thursday launched a massive search operation at 35 premises, 50 companies and over 25 persons linked to a money laundering case against Reliance Anil Ambani Group (RAAGA) Companies, official sources said.
The move followed an investigation launched by the ED under the offence of alleged money laundering by RAAGA companies subsequent to recording of a First Inormation Report (FIR) by the Central Bureau of Investigation (CBI).
As per the officials, other agencies and institutions have also shared information with ED, such as, the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA) and Bank of Baroda.
"Preliminary investigation by ED has revealed well-planned and thought after scheme to divert and siphon off public money by cheating banks, shareholders, investors and other public institutions. The offence of bribing bank officials including, promoter of Yes Banks Limited is also under scanner," Officials, privy to the development, told ANI.
Preliminary investigation reveals illegal loan diversion of around Rs 3,000 crores from Yes Bank (period 2017 to 2019).
ED said it has found that "just before the loan was granted, the Yes Bank promoters received money in their concerns. "ED is investigating this nexus of bribe and the loan."
"ED has found gross violations in Yes Bank loan approvals to RAAGA companies, such as, Credit Approval Memorandums (CAMs) were back-dated, Investments were proposed without any due diligence and credit analysis in violation of Banks Credit Policy inter alia," said the Officials.
In violation of the loan terms, the officials said, these loans were further diverted to many group companies and shell companies.
"Some red flags found by ED include- loans given to entities with weak financials, no proper documentation of loans, no due diligence, borrowers have common addresses, and common directors etc., diversion of loans to promoter group entities, ever greening of GPC loans, loans onward lent on same date, loans disbursed on same date as date of application, loans disbursed prior to sanction, Misrepresentation of financials," the officials said.
It is also informed that "Securities and Exchange Board of India (SEBI) is also learnt to have shared its findings with ED in the case of RHFL."
"Dramatic increase in corporate loans by RHFL, from Rs 3,742.60 crore in Financial Year 2017-18 to Rs 8,670.80 crore in Financial Year 2018-19 is also under ED lens. Issues of irregular and expedited approvals, process deviations many other illegalities have been found," added the officials.
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