The Enforcement Directorate (ED) on Thursday conducted searches at several locations linked to industrialist Anil Ambani’s companies in Mumbai, just days after the State Bank of India (SBI) classified Reliance Communications and its promoter-director Anil D Ambani as ‘fraud’. Now Reliance Power one of Anil Ambani’s few profit making companies have issued a statement on the ED Raid. The company in a statement said, the recent actions by the Enforcement Directorate (ED) have no bearing on its operations, finances, or stakeholders. For the unversed, the raid is in connection with a money laundering probe tied to the Yes Bank loan fraud case.
“These actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power,” the company said. It clarified that Reliance Power is a separate and independently listed entity with no business or financial links to either Reliance Communications Ltd (RCOM) or Reliance Home Finance Ltd (RHFL), the two entities reportedly at the centre of the investigation.. According to the ED, preliminary investigations revealed that loans worth around ₹3,000 crore were allegedly diverted to shell companies and other group entities associated with the Reliance Group.
Investigators have also found evidence suggesting possible bribery of Yes Bank officials, including its promoter. The agency flagged serious irregularities in the bank’s loan approval process, including the use of back-dated credit documents, lack of due diligence, and lending to firms with weak financials and overlapping directorships. In several cases, loan disbursals allegedly occurred on or even before the formal approval dates. The ED has also cited instances of loan evergreening, a practice where new loans are issued to repay old ones to avoid defaults. The stocks of Reliance Infrastructure and Reliance Power hit the 5 per cent lower circuit after the Enforcement Directorate (ED) on Wednesday searched over 35 locations and more than 50 companies associated with Anil Ambani. Reliance Power stock locked in lower circuit at Rs 59.77, whereas Reliance Infrastructure stock experienced lower circuit at Rs 359 on the National Stock Exchange (NSE). The money laundering case is based on two CBI FIRs and inputs from multiple agencies, including SEBI, the National Housing Bank, the National Financial Reporting Authority (NFRA), and Bank of Baroda, the report added.