ED Files Prosecution Complaints Against Reliance Communications, Reliance Infrastructure Over Alleged Fund Diversion

Mumbai: The Directorate of Enforcement (ED) on Saturday filed separate Prosecution Complaints (PCs) before the courts in Delhi in the cases of M/s Reliance Communications Limited (RCOM) and M/s Reliance Infrastructure Ltd (RIL) and others.

ED Alleges Diversion Of Loan Funds By RCOM, RTL

According to the ED, RCOM, M/s Reliance Telecom Limited (RTL), and others have been arraigned as accused for offences under sections of the PMLA. The scheduled offences concern the fraudulent availing and diversion of fund-based and non-fund-based credit facilities by RCOM, RTL and Reliance Infratel Limited, the agency claimed in a statement.

The investigation covers multiple interconnected transactions. ED investigation revealed that fresh credit facilities were repeatedly used fraudulently to repay, rotate and evergreen earlier domestic and foreign liabilities instead of the sanctioned end-use. Funds were layered through group companies, purpose-built conduit entities, multiple bank accounts and liquid mutual funds; used to service earlier external commercial borrowings and foreign currency convertible bonds (FCCB); and projected as legitimate business expenditure or receipts, agency officials said.

Investigation further revealed that the fraudulent scheme had commenced much earlier, at least by 2007, and continued thereafter as one connected and continuing course of criminal activity. Loan proceeds were diverted to group companies such as M/s Reliance Infrastructure Ltd. and M/s Reliance Capital Ltd.; they were also siphoned off to purchase personal assets for the promoters outside India; and serviced to artificially inflate profits for RCOM, the ED's statement claimed.

ED Seeks Confiscation Of ₹8,078 Crore Assets

Confiscation of properties worth Rs 8,078.06 crores attached and confirmed by the adjudicating authority have been prayed for. The properties include leasehold and immovable assets in New Delhi, Navi Mumbai, Bhubaneswar, Chennai and Pune. The PMLA court took cognizance of the main prosecution complaint in this case on June 15, 2026, officials said.

In the case related to RIL, ED had initiated investigation on the basis of FIR registered by EOW, Mumbai in February this year, concerning shell companies incorporated and operated using forged documents and bank accounts for routing funds and outward remittances under the cover of fictitious invoices and over-valued diamond imports.

ED investigation revealed an organized scheme to divert public funds from four NHAI-awarded toll-road projects. The projects were financed through NHAI grants and loans from banks and financial institutions. Approximately Rs 187 crores were allegedly siphoned during September-October 2010 through sham, post-facto or back-dated arrangements for fictitious sub-contracting work, the agency's statement said.

ED has provisionally attached assets valued at Rs 187 crores in this case on August 03, 2026, comprising immovable assets and equity shares.

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