Anil Ambani Group Assets Worth INR 3,034 Crore Frozen by Probe Agency

In a bank "fraud"-linked money laundering investigation against Reliance Communications, the Enforcement Directorate (ED) on 28 April announced the attachment of a Mumbai flat belonging to industrialist Anil Ambani. Further, ED has also attached a Khandala farmhouse jointly held by his son Jai Anshul Ambani. The attachment is valued at INR 3,034 crore.

The Enforcement Directorate stated that the temporary attachment was made in accordance with the Prevention of Money Laundering Act (PMLA). The step was taken in order to safeguard assets from being misappropriated and to ensure the protection of both banks and the general public. Reliance Communications (RCOM) is a subsidiary of the Reliance Anil Ambani Group (RAAG).

Why ED Taken a Strong Step Against RCOM?

State Bank of India, Punjab National Bank, Bank of Baroda, and Life Insurance Corporation of India filed charges against RCOM, Anil Ambani, and others. Hence, these complaints lead to a slew of CBI First Information Reports (FIRs) that were used to build the money laundering case. The ED reports that a sum of INR 40,185 crore is still owing from loans taken out by RCOM and its related firms from both local and international lenders. The property at Anil Ambani's Usha Kiran Building on Cumballa Hill in South Mumbai has been attached by the federal agency.

Jai Anshul Ambani, the son of Ambani, and the Luna Trust own a farmhouse in the Pune hill station of Khandala, which is further attached to the ED list. At long last, a further piece of land in the Sanand neighbourhood of Ahmedabad has also been attached, which is owned by the Mudra Foundation for Communications Research and Education (MICA). Risee Infinity, a subsidiary of Anil Ambani's RiseE Trust, owns 7.71 crore shares of Reliance Infrastructure Ltd, which are also attached.

Why ED is Putting Scanner on Anil Ambani's Family Trust?

According to the ED, Anil Ambani's private family trust was involved. According to the document, Anil Ambani personally guaranteed loans given to RCOM by banks. On the other side, the RiseE Trust was set up to "ensure" the preservation of wealth and the creation of resources by pooling the trust's assets and protecting them from Ambani's personal liabilities.

According to ED, the distressed public banks whose loans became nonperforming were never meant to possess or use the properties; rather, they were earmarked for the Anil Ambani family. Lender banks and other financial institutions are the alleged victims in this case, and the ED has pledged to return their assets to them. This provision, known as "restitution of assets", is available under the PMLA's Section 8.

Response from RAAG

In response to the news, a representative from RAAG stated that Anil Ambani's mother, Kokilaben D. Ambani, owns a portion of the attached properties. The Usha Kiran and Khandala lands, he continued, were inheritances made to the family some forty years ago. As of this most recent development, a total of INR 19,344 crore worth of properties associated with the Reliance Anil Ambani Group have been attached in the pending litigation.

The Enforcement Directorate is looking into allegations of bank fraud and money diversion against the Group. The spokesperson went on to say that MICA has been running autonomously since 1991 and is an AICTE-recognised nonprofit educational institution. Listed on the stock market since 2021, Risee Infinity Pvt Ltd's ownership is known to the public.