Reliance Power shares declined as much as 4.1% to Rs 60.25 on the BSE, while Reliance Infrastructure slid 3.5% to Rs 365.80 in intraday trade.
ED raids in Rs 3,000 crore loan fraud case
The ED on Thursday raided 40 to 50 locations connected to Anil Ambani as part of its investigation into suspected money laundering tied to loans sanctioned by Yes Bank between 2017 and 2019. The agency said these loans, worth around Rs 3,000 crore, were allegedly diverted to shell companies and other group entities.The searches are being conducted under Section 17 of the Prevention of Money Laundering Act (PMLA). The probe follows two FIRs registered by the Central Bureau of Investigation (CBI) and is based on information provided by the Securities and Exchange Board of India (SEBI), the National Housing Bank, Bank of Baroda, and the National Financial Reporting Authority (NFRA).
Evidence of diversion and regulatory lapses
According to the ED, preliminary findings suggest serious lapses in Yes Bank’s credit approval process, including back-dated documentation, disbursement of loans on or before approval dates, and absence of due diligence. Loans were allegedly granted to entities with weak financials and overlapping directorships, raising red flags over violations of lending norms and potential evergreening of accounts.Investigators have also uncovered indications of possible bribery involving Yes Bank officials, including the bank’s promoter, in facilitating the loans.
Sebi flags Reliance Home Finance
The scope of the investigation includes over 50 companies and 25 individuals. Securities and Exchange Board of India (Sebi) has submitted separate findings related to Reliance Home Finance Ltd (RHFL), highlighting that the company’s corporate loan book more than doubled within a year, an anomaly that raised concerns over internal control failures and regulatory breaches.
The broader fallout of the raids and the ongoing probe weighed on investor sentiment surrounding Anil Ambani-led group entities on Thursday, triggering a sell-off in both Reliance Infra and Reliance Power shares.
Also read | ED raids nearly 50 sites linked to Anil Ambani in Rs 3,000 cr Yes Bank loan fraud probe
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