The Enforcement Directorate (ED) has taken major action against Anil Ambani-led Reliance Infrastructure.
The central investigating agency announced on Wednesday that it has seized 13 bank accounts of the company, holding a balance of Rs 54.82 crore, in connection with an ongoing investigation under the Foreign Exchange Management Act (FEMA). The ED said its probe revealed that Reliance Infrastructure, through its Special Purpose Vehicles (SPVs), siphoned public funds from highway construction projects awarded by the National Highways Authority of India (NHAI).
The funds were diverted under the guise of sham sub-contracting arrangements to shell companies in Mumbai. These shell entities were reportedly set up in a coordinated manner with dummy directors at specific bank branches.
According to the press release, the diverted funds were then layered through a network of other shell entities and remitted abroad to the UAE under the pretext of importing polished and unpolished diamonds, without receipt of any equivalent goods or proper documentation.
The UAE entities had bank accounts in both the UAE and Hong Kong and were found to be controlled by individuals engaged in illegal international hawala. The shell entities involved in these transactions were reportedly part of hawala operations worth more than Rs 600 crore.
The ED added that the diversion of project funds caused severe financial stress in the affected SPVs, turning bank loans into Non-Performing Assets (NPAs), resulting in losses to lenders and jeopardising public financial interests.
The agency said further investigation is ongoing.
