RCOM fraud case: ED attaches properties worth Rs 1,452 crore in Bhubaneswar, 3 other cities

Bhubaneswar: The Directorate of Enforcement (ED) has attached multiple buildings and landed properties worth Rs 1,452.51 crore in four cities, including Bhubaneswar, in connection with the bank fraud case involving Reliance Communications Ltd (RCOM). 

The ED has provisionally attached multiple buildings in Dhirubhai Ambani Knowledge City (DAKC) and Millennium Business Park in Navi Mumbai as well as plots and buildings in Pune, Chennai and Bhubaneswar, worth Rs 1,452.51 crore, under the provisions of Prevention of Money Laundering Act (PMLA)-2002 in connection with the bank fraud case of RCOM.

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It had earlier attached properties worth over Rs 7,545 crore in connection with the bank fraud cases of RCOM, Reliance Commercial Finance Limited and Reliance Home Finance Ltd.  

ED had initiated a probe on the basis of an FIR registered by the CBI  

As per reports, the ED had initiated a probe under the PMLA-2002 on the basis of an FIR registered by the CBI under various Sections of the Indian Penal Code (IPC)-1860 and Prevention of Corruption Act-1989 against RCOM, Anil Ambani and others.

RCOM and its group companies had availed loans from domestic and foreign lenders from the period 2010-2012 onwards, of which a total amount of Rs 40,185 crore is outstanding. At least nine banks have declared the loan accounts of the Group as fraud, said the ED.

Also Read: ED attaches assets worth over ₹3,000 crore linked to Reliance Anil Ambani Group

Investigation has revealed that loans taken by an entity of the Group from a bank were utilized for repayment of loans taken by other entities from other banks.

The funds were also transferred to related parties and investments in mutual funds in violation of the terms and conditions of the sanction letter of the loans, added the ED.