Reliance Power and Reliance Infrastructure shares declined up to 5% in early trade on Friday following reports that the Enforcement Directorate (ED) has summoned Reliance Group Chairman Anil Ambani for questioning on August 5. According to a PTI report, Anil Ambani has been asked to appear at the ED headquarters in New Delhi in connection with an alleged loan fraud and money laundering case involving his group companies. The agency is expected to record his statement under the provisions of the Prevention of Money Laundering Act (PMLA).
The agency’s investigation reportedly focuses on the suspected diversion of loan funds and other financial irregularities allegedly committed by companies associated with the Reliance Group. The two Anil Ambani group companies had informed the stock exchanges saying while they acknowledge the action, the raids had "absolutely no impact" on their business operations, financial performance, shareholders, employees or any other stakeholders.
"The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old," the companies had said.The investigation relates to alleged financial irregularities, including a collective loan diversion of over ₹10,000 crore by various group companies. ED sources indicated that a key focus of the probe is the alleged diversion of approximately ₹3,000 crore in loans extend ed by Yes Bank to the Reliance Group between 2017 and 2019, PTI reported.