New Delhi [India], April 19 : The Enforcement Directorate (ED) arrested Amitabh Jhunjhunwala on April 15, the former Managing Director of the Reliance ADAG Group, for his alleged pivotal role in a massive money-laundering scheme involving the siphoning of public funds.
In "GROUNDS OF ARREST" of Jhunjhunwala, ED said that, "He was the key decision maker with respect to various operations of Reliance Home Finance Ltd. (RHFL) and Reliance Commercial Finance Ltd. (RCFL), such as raising of funds, monitoring cash flow, monitoring Assets Under Management, analysis of Annual Operating Plans, disbursal of loans, etc. Chief Executive Officers (CEOs) of RHFL and RCFL were also actively reporting to him."
Investigation conducted under PMLA has revealed a pre-conceived and well-planned scheme to divert/ siphon off public money from Mls Reliance Home Finance Limited (RHFL) and Mls Reliance Commercial Finance Limited (RCFL) through several shell/ paper companies under the pretext of Corporate Loans by cheating banks, shareholders, investors and other public institutions; wherein he has played a prominent role.
The ED further stated that, "He was Director of Reliance Capital Limited (RCAP), holding company of RHFL and RCFL, from March 2003 to September, 2019, and also Vice Chairman of RCAP from March 2006 to September 2019, having full control over the affairs and management of RCAP group of companies, including RHFL and RCFL. He was taking crucial decisions with respect to disbursal of funds from RHFL and RCFL to shell/ paper entities operated and controlled by Reliance Anil Ambani Group in the guise of Corporate Loans."
As per ED, "In order to circumvent the regulatory limits and disclosure requirements so prescribed under relevant laws, you in connivance with Mr. Amit Bapna and others, diverted funds from RHFL and RCFL under the guise of Corporate Loans to various shell/paper companies operated and controlled by Reliance Anil Ambani Group, for the nultimate purpose of routing these funds to other Reliance Anil Ambani Group companies mainly. The aforesaid facts are also corroborated by the statements so recorded under Section 50 of PMLA, 2002."
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