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The Enforcement Directorate (ED) on Friday raided the Dhirubhai Ambani Knowledge City (DAKC) in Navi Mumbai and conducted searches, seizures and freezes of assets. Bhai Ambani Knowledge City is a technology park located in Kopar Khairane in Navi Mumbai. Spread over 56 hectares, the city was built in 2002. It is owned by the Reliance ADA Group and has a 24-hour National Network Operations Center (NNOC).
Earlier, the Enforcement Directorate on Thursday raided several places against the companies of Reliance Group Chairman Anil Ambani as part of a money laundering case related to an alleged bank loan fraud of Rs 3,000 crore. Apart from some more bank loans taken by these companies, some alleged undeclared foreign assets are also under the agency’s investigation.
Under the Prevention of Money Laundering Act (PMLA), more than 35 premises belonging to 50 companies and 25 people were searched in Mumbai. He said that some documents and computer equipment have been recovered. This investigation is being conducted by the Delhi-based investigation unit of ED.
Investigation of allegations of illegal loan diversion of Rs 3,000 crore
ED sources said that they are mainly investigating the allegations of illegal loan diversion of about Rs 3,000 crore given by Yes Bank to Ambani’s group companies between 2017-2019.
Two group companies, Reliance Power and Reliance Infrastructure, said in separate but similar regulatory filings that the ED action has “absolutely no impact” on their business operations, financial performance, shareholders, employees or any other stakeholders.
The companies said, “The media reports appear to be related to allegations related to transactions of Reliance Communications Limited (RCom) or Reliance Home Finance Limited (RHFL), which are more than 10 years old.” Sources said the ED has found that just before the loans were given, Yes Bank promoters had “received” money in their business. The federal probe agency is investigating this nexus of “bribes” and loans.
These allegations have been leveled against the company
Sources said the ED is also probing allegations of “gross violations” in loan approvals by Yes Bank to these companies, including backdated loan approval memos, proposed investments without any investigation/credit analysis in violation of banks’ lending policy. It is alleged that loans were “diverted” by the concerned entities to several group companies and “fake” companies.
Sources said the agency is also probing cases of loans given to entities with weak financial position, lack of proper documentation and due diligence of loans, borrowers having the same address and the same directors in their companies, etc.
They said the money laundering case has arisen from at least two FIRs of the CBI and reports shared with the ED by the National Housing Bank, SEBI, National Financial Reporting Authority (NFRA) and Bank of Baroda.
Sources said these reports indicate that there was a “well-planned and well-thought-out plan” to divert or embezzle public money by defrauding banks, shareholders, investors and other public institutions.
