The Enforcement Directorate (ED) conducted raids at 35 locations on Thursday morning as part of an ongoing investigation into an alleged loan fraud involving companies from the Reliance Anil Dhirubhai Ambani Group. The action follows the State Bank of India’s decision to classify Reliance Communications (RCOM) as a fraud account and report its former director, Anil Ambani, to the Reserve Bank of India (RBI).
Wider Network Under ED Investigation
The ED is currently examining more than 50 companies and 25 individuals suspected to be part of the broader network connected to the loan irregularities. Early findings suggest that Yes Bank promoters may have received funds personally before approving large loans to Anil Ambani-led companies, indicating a possible quid pro quo arrangement.
Reliance Power Responds to Allegations
In response to media reports, Reliance Power issued a statement clarifying that the ED’s actions have no connection with its business. The company emphasized that its operations, finances, employees, and shareholders remain unaffected by the investigation.
No Link with RCOM or RHFL
Reliance Power reiterated that it is a separate and independent listed entity, with no financial or business ties to Reliance Communications (RCOM) or Reliance Home Finance Limited (RHFL). The company clarified that RCOM has been undergoing Corporate Insolvency Resolution for over six years, while RHFL has already been resolved following a Supreme Court judgment.
Anil Ambani Not on Reliance Power Board
The company also pointed out that Anil Ambani does not serve on the board of Reliance Power. Therefore, any regulatory action or investigation targeting RCOM or RHFL has no bearing on Reliance Power’s governance or daily operations.
Focus Remains on Business and Growth
Despite the allegations surrounding other group entities, Reliance Power affirmed its commitment to its business plans and value creation for stakeholders. It also noted that similar allegations remain sub-judice and are currently under review by the Securities Appellate Tribunal.
