ED chargesheets against RCom, Reliance Infra in 40k crore bank fraud
The Enforcement Directorate has filed two chargesheets against Reliance Communications and Reliance Infrastructure, accusing them of money laundering and a bank fraud exceeding Rs 40,000 crore. The agency alleges that funds were diverted through shell companies and fictitious sub-contracts, and is seeking the confiscation of assets belonging to the company and its promoters.
Why it matters
This case represents a major crackdown on corporate financial malfeasance in India, highlighting systemic issues in bank lending and the misuse of public funds by large conglomerates.
NEW DELHI: ED filed two chargesheets, one each against Reliance Communications (RCom) and Reliance Infrastructure Ltd, on Saturday before a special court here, naming Gautam Doshi, Sateesh Seth, Amitabh Jhunjhunwala and the two entities of Anil Ambani's Reliance Group as the accused for offences of money laundering and defalcation of bank funds of over Rs 40,000 crore.In its chargesheet against RCom, the agency has said that "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 role of the accused in the raising, deployment, concealment and projection of the funds, including false certification of end-use of $1 billion in FCCB proceeds, was also highlighted.ED sought confiscation of properties worth Rs 8,078 crore attached…
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