India’s federal agency freezes Anil Ambani Group’s $351 million in properties, source says

• ED freezes INR 30.84 billion in assets of Ambani Group.
• Mumbai, Delhi, Chennai holdings seized, source says.
• Supposedly $350 million collected through shell companies.

NEW DELHI: India’s economic crime agency has temporarily frozen 30.84 billion Indian rupees ($350.87 million) in assets linked to Anil Ambani’s Reliance Group as part of a money-laundering probe, a government source said on Monday.

The case concerns loans the group, owned by billionaire Mukesh Ambani’s younger brother, received from India’s YES Bank between 2017 and 2019 of more than $568.86 million. The investments made with the funds did not return.

The Enforcement Directorate has now blocked any transaction in residential units and plots in Mumbai, Delhi and Chennai, including industrialist Anil Ambani’s family residence in Mumbai, the source added.

Reliance Group did not immediately respond to a request for comment.

Investigators allege the funds raised by Reliance Home Finance Ltd and Reliance Commercial Finance Ltd were part of a “well-planned” scheme to absorb 30 billion Indian rupees ($350 million) in loans from YES Bank to several shell companies.

The loans were initially invested through mutual funds and routed to entities linked to the group in breach of regulations. The Reliance Group entities are also accused of bribing YES Bank officials before disbursing the loans, a government source had earlier said.

The Enforcement Directorate cited weak borrower profiles, lack of documentation and misuse of funds, the source said, in a case involving diversion and laundering of public money.

The agency is also investigating Reliance Communications Ltd and its subsidiaries, where more than 136 billion Indian rupees ($1.55 billion) were allegedly diverted through green building loans and capital diversion.