Rs 40,000 crore bank fraud: ED files chargesheets against RCom, Reliance Infra

The Enforcement Directorate (ED) has filed separate chargesheets against Reliance Communications (RCom) and Reliance Infrastructure Ltd in connection with alleged money laundering and diversion of bank funds worth more than Rs 40,000 crore.

The chargesheets were filed before a special court on Saturday. The agency has named Gautam Doshi, Sateesh Seth, Amitabh Jhunjhunwala, RCom and Reliance Infrastructure among the accused, per a report by The Times of India.

The cases are linked to alleged financial irregularities involving entities of Anil Ambani's Reliance Group.

ED puts RCom proceeds of crime at Rs 40,186 crore

In its chargesheet against RCom, the ED said the proceeds of crime were linked to the outstanding amount owed to a consortium of banks and financial institutions.

"The proceeds of crime are quantified at Rs 40,186 crore, the outstanding sum defaulted on by the entities to a consortium of banks and financial institutions".

The agency also highlighted the alleged role of the accused in raising, deploying and concealing funds. It referred to what it described as false certification of the end-use of $1 billion in foreign currency convertible bond (FCCB) proceeds.

The ED has also sought confiscation of properties worth Rs 8,078 crore that were attached earlier in the case. The properties belong to Reliance Communications, its promoters and directors, including assets linked to Anil Ambani.

Reliance Infra case linked to NHAI projects

In the separate case involving Reliance Infrastructure, the ED alleged that funds were diverted from four toll-road projects awarded by the National Highways Authority of India (NHAI).

"Probe revealed an organised scheme to divert public funds from four NHAI-awarded toll-road projects: Trichy-Karur (NH-67), Trichy-Dindigul (NH-45), Salem-Ulundurpet (NH-68) and Jaipur-Reengus (NH-11). The projects were financed through NHAI grants and loans from banks and financial institutions. Approximately Rs 187 crore was siphoned off during Sept-Oct 2010... for fictitious sub-contracting work."

The agency alleged that documents were later created to present the transactions as legitimate project expenses, while funds were routed through shell entities and diamond traders.

ED alleges misuse of RCom credit facilities

The agency also alleged that RCom's fresh credit facilities were not used for their approved purpose.

"Fresh credit facilities were fraudulently used to repay, rotate domestic...liabilities instead of the sanctioned end-use."

The chargesheets mark a major development in the ED's investigation into the alleged diversion and laundering of funds involving the two Reliance Group companies.