Reliance Power, Reliance Infra move to calm markets after ED attaches Rs 7,500 crore in assets

Reliance Power Ltd and Reliance Infrastructure Ltd, both owned by Anil Ambani, have issued official statements denying any operational disruption following the Enforcement Directorate's (ED) provisional attachment of certain assets under the Prevention of Money Laundering Act (PMLA). The companies have moved swiftly to allay concerns among employees, shareholders, and the wider market by confirming that business activities will continue as normal despite the ongoing investigation and asset attachment valued at over Rs 7,500 crore.

In a recent filing with the stock exchanges, Reliance Power addressed the asset attachment, clarifying that the company is actively contesting the matter through appropriate legal channels. The company stated, "Reliance Power said that certain assets of the company have been provisionally attached by the ED. However, it emphasized that the matter is sub judice and under challenge before the appropriate legal forums. The company further assured that its business operations remain unaffected and that it continues to meet all obligations in the normal course."

Reliance Infrastructure Ltd also made a clear distinction between the ongoing proceedings and its present management, emphasising that Anil D. Ambani has not held a board position for more than three and a half years. In its statement, the company said, "Reliance Infrastructure Ltd clarified that the ED has attached certain assets alleging violations under the PMLA but stressed that this has no bearing on its functioning or stakeholder interests. The company also pointed out that Anil D. Ambani has not been on the board of Reliance Infrastructure for more than three and a half years, distancing its current management from the ongoing proceedings."

Both companies reiterated their commitment to legal compliance and transparency, underlining that they are fully compliant with all applicable laws and are cooperating with the authorities. The statements appeared designed to reassure investors in the wake of heightened scrutiny linking the companies to a broader investigation involving Anil Ambani group entities.

According to reports, the ED's latest action includes the attachment of around 132 acres of land within the Dhirubhai Ambani Knowledge City (DAKC) complex in Navi Mumbai, valued at approximately Rs 4,462 crore. This step is part of an ongoing probe into alleged financial irregularities and money laundering.

The enforcement agency's broader investigation focuses on bank fraud cases involving Reliance Communications Limited, Reliance Communications Finance Limited, and Reliance Home Finance Limited. Prior to this, the agency had attached 42 properties, estimated at Rs 3,083 crore, in connection with the same case—bringing the total value of attached assets to about Rs 7,500 crore.

A significant focus of the probe is on the alleged diversion and laundering of public funds raised by Reliance Home Finance Ltd (RHFL) and Reliance Commercial Finance Ltd (RCFL). Yes Bank invested Rs 2,965 crore in RHFL and Rs 2,045 crore in RCFL between 2017 and 2019. By December 2019, Rs 1,353.50 crore for RHFL and Rs 1,984 crore for RCFL remained unpaid as these investments turned non-performing.

The ED reportedly found that direct investments by the former Reliance Nippon Mutual Fund in Anil Ambani Group’s finance companies were not permitted under SEBI’s conflict-of-interest rules. The agency alleges that funds from the public, channelled through the mutual fund, were routed indirectly via Yes Bank’s investments, which ultimately reached entities linked to the Anil Ambani Group.