New Delhi, August 9: The Enforcement Directorate (ED) has filed a supplementary complaint against Reliance Communications (RCom) in an ongoing case under the Prevention of Money Laundering Act (PMLA). This information was disclosed by the government agency on Sunday.
A supplementary complaint adds new and significant information to an existing complaint. The ED reported that this additional prosecution complaint was filed on Saturday, following the initial prosecution complaint submitted on March 27.
According to the ED’s statement, Reliance Communications Limited (RCom), Reliance Telecom Limited (RTL), Gautam Bhailal Doshi, Satish Seth, Amitabh Jhunjhunwala, and others have been accused under Section 4 of the PMLA, along with offenses under Section 3 and Section 70, which is read in conjunction with Section 3.
The value of the money involved in the crime is estimated at ₹40,185.55 crore. This amount represents the total outstanding dues that the borrowing companies have failed to pay to consortium banks, financial institutions, and bondholders. The investigation has uncovered various roles of the accused in raising, utilizing, concealing, and misrepresenting funds, including fraudulent certification regarding the final use of $1 billion obtained through Foreign Currency Convertible Bonds (FCCBs).
The ED has sought the attachment and confirmation of assets worth ₹8,078.06 crore. These assets include leasehold and immovable properties located in New Delhi, Navi Mumbai, Bhubaneswar, Chennai, and Pune.
Under this Enforcement Case Information Report (ECIR), Doshi was arrested on June 12, and Seth was apprehended on July 9. Both are currently in judicial custody.
The special court for PMLA cases took cognizance of the main prosecution complaint on June 15. The ED initiated the investigation based on multiple FIRs registered by the CBI, Banking Securities, and Fraud Branch in New Delhi, following complaints from banks and financial institutions. These offenses are related to fraudulent benefits derived from fund-based and non-fund-based credit facilities by RCom, RTL, and Reliance Infratel Limited, involving several interconnected transactions.
The investigation revealed that instead of using the funds for their approved purposes, new credit facilities were repeatedly misused to settle, rotate, and ‘evergreen’ old domestic and foreign liabilities. Funds were diverted through group companies, specially created entities, multiple bank accounts, and liquid mutual funds; these were presented as legitimate business expenses or receipts for the payment of old External Commercial Borrowings (ECBs) and FCCBs.
The scheme of fraud appears to have commenced as early as 2007 and continued as part of an interconnected and ongoing series of criminal activities. The loan proceeds were diverted to group companies like Reliance Infrastructure Limited and Reliance Capital Limited. The funds were also used to purchase private properties abroad for the promoters and to artificially inflate RCom’s profits.
The statement concluded that further investigation into the matter is ongoing.
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