Bad news for Anil Ambani as Reliance Infra, RPower shares drop by 5% after ED raids, market cap reaches...

Anil Ambani, Reliance Group chairman, hit the headlines on Thursday after the Enforcement Directorate (ED) conducted searches at dozens of premises linked to the businessman in connection with an ongoing probe into an alleged Rs 3,000 crore loan fraud involving Yes Bank. Soon after the news, shares of Ambani's key companies, Reliance Infrastructure and Reliance Power, saw a decline. Reliance Power shares declined as much as 5.01 per cent to Rs 59.77 on the NSE. Its market cap stands at Rs 24687 crore, as of July 24. While Reliance Infra shares slid 4.99 per cent to Rs 359.85 on Thursday, with a market cap of Rs 14679 crore.

ED raids Anil Ambani-linked premises

The central agency on Thursday conducted simultaneous raids as part of an alleged Rs 3,000 crore worth bank loan fraud linked money laundering case against the companies of Reliance Group chairman Anil Ambani, official sources said. More than 35 premises in Mumbai belonging to 50 companies and 25 persons are being searched under the Prevention of Money Laundering Act (PMLA), they said.

A Delhi-based investigation unit of the ED is carrying out the investigation. ED sources said they are probing allegations of illegal loan diversion of around Rs 3,000 crore, given by Yes Bank, to the group companies of Anil Ambani between 2017 and 2019.

Anil Ambani's firms respond

Both Reliance Infra and Reliance Power have asserted that the said actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the firms. "The said actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power," a BSE filing said.

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The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old, the filing said. It is clarified that Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL, the company noted. The filing further said that RCOM is undergoing a corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, 2016, for over 6 years.

The filing also said Anil Ambani is not on the Board of Reliance Power. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power. Reliance Power continues to focus on its business plans and remains committed to creating value for all stakeholders, the filing added. In a separate filing, Reliance Infrastructure also clarified that the company is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL.

(With inputs from PTI)