ED Raids Rock Anil Ambani's Reliance Companies Amid Loan Fraud Allegations
Shares of Reliance Power and Reliance Infra dropped 5% to respective lower circuit limits following ED raids linked to a Rs 3,000 crore loan fraud case against Anil Ambani-related companies. Despite the action, both companies report no impact on their operations. ED investigates allegations of illegal loan diversions involving Yes Bank.
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In a significant development, the shares of Reliance Power and Reliance Infrastructure saw a 5% plunge, reaching their lower circuit limits on Thursday. This financial setback comes on the heels of Enforcement Directorate (ED) raids targeting a purported Rs 3,000 crore loan fraud case associated with companies linked to Anil Ambani.
The ED's sweeping raids on more than 35 locations in Mumbai, involving 50 firms and 25 individuals, underscore the gravity of the allegations. The probe focuses on alleged illegal loan diversions by Yes Bank to Anil Ambani's group companies between 2017 and 2019, according to official sources.
Despite the stock market turmoil, Reliance Power and Reliance Infrastructure maintain that the ED's actions do not impact their business operations or financial health. Both firms emphasize their independence from Reliance Communications Limited and Reliance Home Finance Limited, which are embroiled in litigation and insolvency proceedings.
(With inputs from agencies.)
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