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• The Enforcement Directorate has filed prosecution complaints in two separate money laundering cases against the Reliance Anil Ambani Group and its former executives.
• The cases involve alleged bank fraud, shell entities, and fictitious invoices used to route funds and outward remittances.
• The ED's investigation found that around ₹187 crore was siphoned off during September and October 2010 through sham arrangements for fictitious sub-contracting work.
• Sateesh Seth, a former group executive of the Reliance Anil Ambani Group, was arrested by the ED and is presently in judicial custody.

The agency has alleged that around ₹187 crore was siphoned off during September and October 2010 through sham, post-facto or back-dated arrangements for fictitious sub-contracting work.

The Enforcement Directorate (ED) has filed prosecution complaints in two separate money laundering cases against the Reliance Anil Ambani Group and its former executives. The cases involve alleged bank fraud, shell entities, and fictitious invoices used to route funds and outward remittances. The ED's investigation uncovered an organised scheme to divert funds from four toll-road projects awarded by the National Highways Authority of India (NHAI). The agency has alleged that around ₹187 crore was siphoned off during September and October 2010 through sham, post-facto or back-dated arrangements for fictitious sub-contracting work. The ED has attached immovable properties and equity shares of Reliance Power held by RInfra, along with land held in the name of Ksheeraabd Constructions, with a combined value of around ₹187 crore.

One of the cases involves Reliance Infrastructure Limited (RInfra), which was allegedly used as a conduit to route funds through shell entities and diamond traders. The ED's investigation found that documents were created to present the transfers as genuine project expenditure, while the funds were layered through shell entities and diamond traders. Sateesh Seth, a former group executive of the Reliance Anil Ambani Group, was arrested by the ED and is presently in judicial custody. Further investigation into the role of other individuals is continuing, the agency said.

The second case involves Reliance Communications Limited (RCom), Reliance Telecom Limited (RTL), and Reliance Infratel Limited. The ED's investigation found that fresh credit facilities were repeatedly used to repay, rotate and evergreen earlier domestic and foreign liabilities instead of being used for the purposes for which the facilities were sanctioned. The agency has alleged that the funds were layered through group companies, specially created conduit entities, multiple bank accounts, and liquid mutual funds. Loan proceeds were diverted to group companies, including Reliance Infrastructure and Reliance Capital, and were subsequently used to purchase personal assets for promoters outside India.

Lawyers and compliance officers should watch for potential exposure in transactions involving shell entities, fictitious invoices, and outward remittances through bank accounts. They may also need to advise clients on the implications of these chargesheets on their business dealings with the Reliance Anil Ambani Group.

Source: Original reporting via Business Standard