NewsStocksED Conducts Extensive Searches at Anil Ambani's Reliance Group Amid Strong Q1 PerformanceED Conducts Extensive Searches at Anil Ambani's Reliance Group Amid Strong Q1 Performance
By ScanX News Team
The Enforcement Directorate (ED) conducted a three-day search operation at multiple premises linked to Anil Ambani's Reliance Group companies in Mumbai and Delhi, investigating alleged financial irregularities involving over Rs 24,000 crore. The probe covers fund diversion, loan fraud, and money laundering. Simultaneously, Reliance Infrastructure Limited reported improved Q1 results, with consolidated total income up 41% QoQ to Rs 6,036.00 crore and a turnaround to profit before tax of Rs 287.00 crore. The company claims to be debt-free with zero net debt to banks and financial institutions, stating that the ED action has no impact on its operations or stakeholders.
*this image is generated using AI for illustrative purposes only.
The Enforcement Directorate (ED) has completed a three-day search operation at multiple premises linked to Anil Ambani's Reliance Group companies across Mumbai and Delhi, as part of a money laundering probe involving over Rs 24,000 crore. This development comes as Reliance Infrastructure Limited, a key company in the group, reports a turnaround in its financial performance for the first quarter.
ED Investigation
The ED's investigation focuses on alleged financial irregularities including:
- Fund diversion
- Loan fraud
- Money laundering
Investigators seized documents, hard drives, and digital records during the operation, which covered:
- More than 35 premises connected to Reliance Home Finance Ltd.
- Approximately 50 companies
- 25 individuals
The probe includes examining potential bribes to bank officials, including Yes Bank founders, and investigating increased corporate loan disbursals by Reliance Home Finance Ltd. between April 2017 and March 2019. Concurrently, the Central Bureau of Investigation (CBI) has initiated its own inquiry into other Reliance Group companies, with a case expected to be registered soon.
Reliance Infrastructure's Q1 Performance
Despite the ongoing regulatory scrutiny, Reliance Infrastructure Limited has reported a significant improvement in its financial performance for Q1:
| Metric | Q1 Result | Change |
|---|---|---|
| Consolidated total income | Rs 6,036.00 crore | Up 41% QoQ from Rs 4,268.00 crore in Q4 |
| Consolidated EBITDA | Rs 1,494.00 crore | Up 29% YoY from Rs 1,155.00 crore in Q1 |
| Consolidated profit before tax (PBT) | Rs 287.00 crore | Turnaround from a loss of Rs 78.00 crore in Q1 |
| Consolidated net worth | Rs 14,855.00 crore | Up 4% from Rs 14,287.00 crore |
Operational Highlights
Reliance Infrastructure's operational performance also showed improvements:
- Delhi Discoms added over 51,434 new households, bringing the total to approximately 52.78 lakh.
- Transmission & Distribution (T&D) losses were reduced to below 6.5% on a rolling basis in Delhi Discoms.
- Delhi Discoms successfully met a combined peak demand of 5,607 MW.
- Mumbai Metro One achieved its highest ever Q1 fare revenue of Rs 84.00 crore.
Company's Statement
Reliance Infrastructure emphasized that it is now debt-free with zero net debt to banks and financial institutions. The company also stated that the recent ED action has no impact on Reliance Infrastructure, its business operations, financial performance, shareholders, employees, and other stakeholders.
Strategic Partnerships
The company highlighted its strategic partnerships with world-leading defense players, reaffirming its commitment to the Indian market and the 'Make in India' initiative of the Indian government.
As the investigations continue, Reliance Infrastructure's strong financial performance in Q1 presents a contrasting picture to the ongoing regulatory scrutiny faced by the wider Reliance Group. The coming months will be crucial in determining the long-term implications of these developments for Anil Ambani's business empire.
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