Reliance Infrastructure

Shares of Reliance Power and Reliance Infrastructure declined up to 4.9% following the Enforcement Directorate's summons to Anil Ambani for questioning in an alleged Rs 17,000-crore loan fraud case. Reliance Power dropped 4.16% to Rs 50.65 while Reliance Infrastructure fell nearly 5% to Rs 312. Ambani has been directed to appear before the ED on August 5. The investigation focuses on suspected diversion of loan funds and financial irregularities within the Reliance Group. The ED conducted searches at 35 locations across Mumbai covering 50 companies and 25 individuals under the Prevention of Money Laundering Act. SEBI has submitted findings of its probe alleging Rs 10,000 crore diversion by Reliance Infrastructure through transactions with CLE Pvt Ltd disguised as intercorporate deposits without proper approvals. SEBI's investigation covers FY13 to FY23, during which R Infra had annual dealings with CLE amounting to 25-90% of CLE's total assets. As of March 31, 2022, R Infra's total financial exposure to CLE stood at Rs 8,302 crore. Between FY17 and FY21, R Infra wrote off Rs 10,110 crore under provisions for fair value adjustments and impairment losses. A person close to the Reliance Group disputed the findings, stating the actual exposure was Rs 6,500 crore and that recovery proceedings are underway with a settlement reached to recover the entire amount.