Reliance Infrastructure and Reliance Power on Sunday said that the Enforcement Directorate's recent actions across company premises had concluded, adding that there was no disruption to operations or impact on financial performance.
The statement followed a three-day crackdown by the agency in connection with alleged loan fraud involving entities linked to the Anil Ambani-led Reliance Anil Dhirubhai Ambani Group (RAAGA).
“Action by ED has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company,” both firms noted in separate but identically worded disclosures.
Officials had on Thursday searched over 35 locations and more than 50 companies in Delhi and Mumbai linked to the group. The probe pertains to the alleged diversion of loans worth ₹3,000 crore from Yes Bank between 2017 and 2019.
The companies said the media coverage appeared to be based on historical allegations linked to Reliance Communications (RCom) or Reliance Home Finance (RHFL), neither of which, they emphasised, are connected to them. “R-Infra and R-Power are separate and independently listed entities with no business or financial linkage to RCom or RHFL,” they clarified.
Also read: ED extends raids against Anil Ambani Group firms for third day
They further stated that Anil Ambani, under whose leadership RAAGA came into prominence, is no longer on the boards of Reliance Infrastructure or Reliance Power.
RCom is currently undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), while RHFL has already been resolved following a Supreme Court judgement, the statement added.
“The company continues to operate in the normal course… and remains committed to creating value for all stakeholders,” the firms said, stressing that they have “fully cooperated” with the ED and would continue to do so.
Earlier this month, the State Bank of India had labelled RCom's loan account as 'fraudulent', with disclosure to the Reserve Bank of India expected. RHFL, meanwhile, has been under litigation at the Securities Appellate Tribunal.
The development comes as ADAG companies face intense scrutiny, though R-Infra and R-Power maintain the regulatory actions have no bearing on their governance or management.
Follow us
