ED seizes 13 Reliance Infrastructure bank accounts, Rs 54.82 crore frozen due to FEMA violations
The Enforcement Directorate (ED) has taken major action against Anil Ambani-led Reliance Infrastructure.
The central probe agency on Wednesday said it has seized 13 bank accounts of the company, holding a balance of Rs 54.82 crore, as part of an ongoing investigation under the Foreign Exchange Management Act (FEMA). The ED said its investigation revealed that Reliance Infrastructure, through its Special Purpose Vehicles (SPV), siphoned off public funds from highway construction projects awarded by the National Highways Authority of India (NHAI).
The funds were diverted under the guise of fictitious subcontracting agreements to shell companies in Mumbai. These shell entities were allegedly created in coordination with dummy directors in specific bank branches.
According to the press release, the misappropriated funds were then distributed through a network of other front entities and transferred overseas to the United Arab Emirates under the guise of importing cut and unpolished diamonds, without receipt of equivalent goods or proper documentation.
The UAE entities had bank accounts in the UAE and Hong Kong and were controlled by individuals engaged in illegal international hawala. The shell entities involved in these transactions are said to be part of hawala operations worth over Rs 600 crore.
The ED added that the misappropriation of project funds caused serious financial stress in the affected SPVs, turning bank loans into non-performing assets (NPAs), leading to losses for lenders and jeopardizing public financial interests.
The agency said further investigation is underway.
