Anil Ambani Summoned by ED in Major Loan Fraud Investigation
The Enforcement Directorate has summoned Anil Ambani over allegations of loan fraud involving his group companies. This action follows a series of searches related to alleged financial irregularities and loan diversion. The investigation focuses on illegal loan diversions and gross violations in loan approvals by Yes Bank.
- Country:
- India
Anil Ambani, Chairman of Reliance Group, has been summoned by the Enforcement Directorate (ED) for questioning concerning an alleged loan fraud case involving his companies. The 66-year-old executive is to appear at the ED headquarters in Delhi, where his statement will be recorded under the Prevention of Money Laundering Act (PMLA).
Sources indicate that this summons follows the federal agency's sweeping searches of multiple companies and executives within the Ambani business network last week, uncovering suspected financial irregularities and loan diversions exceeding Rs 10,000 crore. The raids extended over 35 premises in Mumbai, covering 50 companies and 25 individuals linked to the group.
The ED's probe underscores allegations of significant violations in Yes Bank's loan processing. These include back-dated credit approvals and funds disbursed without necessary due diligence. Additionally, money was allegedly funneled through numerous group and shell companies involving entities with insufficient financial standing, lacking loan documentation and proper oversight.
(With inputs from agencies.)
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