Mumbai, Dec 10: The Enforcement Directorate (ED) has seized assets worth ₹54.82 crore belonging to Reliance Infrastructure Limited (R-Infra) under Section 37A of the Foreign Exchange Management Act (FEMA), 1999, the agency said on Thursday.
13 Bank Accounts Frozen For Alleged FEMA Violations
According to the ED, its Special Task Force at the headquarters has frozen 13 bank accounts of R-Infra for alleged violations of Section 4 of FEMA. The action stems from an ongoing probe in which Reliance Group chairperson Anil Ambani had also been summoned earlier for recording his statement, officials said.
Funds Allegedly Siphoned Through SPVs & Sham Contracts
The investigation has found that R-Infra, through its Special Purpose Vehicles (SPVs), allegedly siphoned off public funds from highway construction projects awarded by the National National Highways Authority of India (NHAI). Officials said the funds were diverted through sham subcontracting arrangements to a cluster of shell companies in Mumbai. These entities were allegedly created using dummy directors, with bank accounts opened at select branches to channel the diverted money.
Funds Layered Through Shell Firms, Remitted To UAE
According to an ED statement, the diverted funds were layered across multiple shell entities and remitted to the UAE under the guise of payments for polished and unpolished diamond imports. However, no goods or documentation were received in return, the agency said.
Hawala Links Suspected; Transactions Over Rs 600 Crore
The UAE-based companies receiving the remittances had bank accounts in both the UAE and Hong Kong and were allegedly controlled by individuals linked to illegal international hawala operations. The shell companies that facilitated the diversions are suspected to be part of hawala transactions exceeding ₹600 crore, the financial probe agency said.
SPVs Suffered Financial Stress, Loans Turned NPAs
The agency added that the diversion of project funds pushed the SPVs into severe financial stress, resulting in several bank loans turning into Non-Performing Assets (NPAs), causing losses to lenders and endangering public financial interests.
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Anil Ambani Summoned Twice, Sought Virtual Deposition
In this FEMA case, the ED had summoned Anil Ambani twice, but he did not appear, officials said. Ambani informed the agency that he was willing to depose through a “virtual appearance/recorded video” at any date and time convenient to investigators. The ED, however, rejected his request for a virtual deposition, insisting that he join the probe in person.
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