On Thursday, the Enforcement Directorate (ED) conducted a massive operation at more than 35 locations in Mumbai connected with the industrialist Anil Ambani as they continued their money laundering investigation. The investigation is part of the inquiry undertaken under the Prevention of Money Laundering Act (PMLA) that is linked to a suspected 3,000-crore bank loan scam by companies that form part of the Reliance Anil Dhirubhai Ambani Group (ADAG).
The authorities reaffirmed that the ED is investigating the role of approximately 50 businesses and 25 persons linked with the situation. Allegedly, the loans issued by Yes Bank to other companies of the Adag group since 2017 are the main subject matter of the investigation, as the money has been misappropriated illegally. Officials are also investigating possible payment of bribes to officials and to Yes Bank promoters in a quid pro quo arrangement to approve loans.
The sources claimed that the ED triggered its action after the Central Bureau of Investigation (CBI) and other agencies filed two FIRs. Initial investigations reveal some sort of well-planned strategy of misappropriation of government money through misleading banks, shareholders, and investors. The violations alleged to have been discovered are backdating the documents authorizing credit approval, weak due diligence, and a violation of the internal credit policies of Yes Bank.
In reaction to the searches, two major firms under the group, Reliance Power and Reliance Infrastructure, said that in the same regulatory documents, there has been no impact whatsoever on their present activities or financial condition, the workforce, or shareholders by the actions of the ED. The firms made it clear that the charges appear to be connected to historic deals of Reliance Communications (RCOM) and Reliance Home Finance (RHFL) more than ten years ago.
Yes Bank did not comment on the probe as one of its spokespersons declined to comment on the investigation. The investigation by the ED is still going on, and further revelations are likely to come since documents and electronic records that have been seized in the raids would be scrutinized.
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