The Enforcement Directorate on Tuesday conducted searches in Maharashtra and Madhya Pradesh as part of a FEMA investigation against Anil Ambani’s Reliance Infrastructure. At least six premises in Mumbai and Indore were raided.
“The searches are part of a FEMA investigation being conducted against Reliance Infrastructure on charges of making some illegal remittances abroad,” a source said. The ED has already been investigating alleged financial irregularities and collective loan diversion pegged at over `17,000 crore by multiple group companies of Anil Ambani, including Reliance Infrastructure (R Infra), under PMLA.
The action came on a SEBI report alleging R Infra diverted funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company named CLE. It was alleged that R Infra did not disclose CLE as its related party to avoid approvals from shareholders and audit panels.
The Reliance Group had earlier denied any wrongdoing and said the allegation regarding the alleged diversion of `10,000 crore to an undisclosed party was a 10-year-old matter and the company had stated in its financial statements that its exposure was only around `6,500 crore.
On Tuesday, Reliance Infrastructure Ltd said in a statement: “In 2010, the Company had awarded an EPC contract for the construction of the JR Toll Road (Jaipur–Ringus Highway) to Prakash Asphalting’s and toll Highways. This was a domestic contract with no foreign exchange involved. The work was completed, and the company has no continuing connection or relationship with the said contractor. The Toll Road has been with NHAI for the last four years. The Company and its officials are fully cooperating, as always. This action has absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the Company.”
