New Delhi [India], February 25 The Enforcement Directorate (ED) has attached Mumbai's Pali Hill Residential property 'Abode' of industrialists Anil Ambani worth Rs 3,716.83 crores in connection with its ongoing money laundering probe linked to Reliance Communications Ltd's alleged bank fraud case, the agency said on Wednesday.
ED's Special Task Force (Headquarters) attached the property under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). Earlier, part of this property was attached to the extent of Rs 473.17 crores.
With the fresh action, the cumulative attachment of properties in the group now stands at over Rs 15,700 crore, said the ED in a statement.
ED had initiated an investigation based on the Central Bureau of Investigation's First Information Report (FIR) under sections 120-B, 406 and 420 of the Indian Penal Code, 1860 and section 13(2) read with section 13(1)(d) of the Prevention of Corruption Act, 1989 against Reliance Communications Ltd (RCOM), Anil Ambani, and others.
ED said RCOM and its group companies availed loans from domestic and foreign lenders, of which a total amount of Rs 40,185 crores is outstanding.
ED said its investigation has revealed that, among other assets, the Pali Hill property was aggregated into the RiseE Trust - a Private Family Trust of the members of Anil Ambani's family. "This was done to make it appear as though Anil Ambani is not involved," said the federal agency.
"The intended effect of this corporate restructuring was to ensure wealth preservation and resource generation by aggregation of the property in the RiseE trust and shield it from the personal liabilities of Anil Ambani in the form of Personal Guarantees extended by him to lender banks against the loans sanctioned to RCOM. The property was intended to be beneficially used and owned by the Anil Ambani family and not for the distressed public banks whose loans turned NPA."
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