Reliance says the case is about a 15-year-old highway contract inside India, which had nothing to do with foreign payments. The probe is ongoing.
MUMBAI (India CSR): Hours after the Enforcement Directorate (ED) searched six premises linked to Anil Ambani’s Reliance Infrastructure in Mumbai and Indore, the company issued a statement clarifying that the probe relates to a contract awarded more than 15 years ago.
Why ED Conducted the Raids
The searches were carried out as part of an investigation under the Foreign Exchange Management Act (FEMA). Officials suspect that Reliance Infrastructure may have sent money abroad illegally. At least six locations in Mumbai and Mhow (Indore) were covered by the ED teams.
The raids come amid ongoing investigations against several Anil Ambani group firms for alleged financial irregularities worth over Rs, 17,000 crore under the Prevention of Money Laundering Act (PMLA).
Reliance Infra’s Clarification
In its official statement, Reliance Infrastructure said the matter relates to a domestic contract from 2010 for the Jaipur–Ringus Toll Road Project. The company explained:
- The EPC (Engineering, Procurement and Construction) contract was given to Prakash Asphaltings & Toll Highways.
- It was purely a domestic deal with no foreign exchange involved.
- The project has long been completed and the toll road has been under the National Highways Authority of India (NHAI) for the past four years.
- Reliance Infra said it has no ongoing links with the contractor.
Past Allegations Against Reliance Infra
The ED probe builds on earlier findings where Reliance Infrastructure and other group firms were accused of diverting funds:
- Market regulator SEBI had flagged concerns that Reliance Infra disguised loans as inter-corporate deposits (ICDs) and routed them to other Reliance Group companies through a firm called CLE.
- Investigators say Reliance Infra did not disclose CLE as a related party, which helped it bypass approvals from shareholders and audit panels.
- Reliance Group has denied wrongdoing, calling the issue “old and exaggerated.” The company claims its real exposure was about ₹6,500 crore, fully reported in its financial records.
What Happens Next
The ED will continue examining financial documents and contracts to determine if there were violations of FEMA in the case. The raids signal that the regulatory pressure on Anil Ambani’s companies is not easing, even as Reliance Infrastructure insists that the probe concerns an old and closed matter.
(India CSR)
