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Raids Linked to Alleged Fraud

Mumbai, Aug 23: Just days after the Enforcement Directorate (ED) interrogated businessman Anil Ambani regarding a money laundering investigation, the Central Bureau of Investigation (CBI) executed raids at various locations associated with Reliance Communications (RCOM) and its Promoter Director on Saturday.

These operations, carried out across multiple sites in Mumbai, are part of an inquiry into an alleged fraud that reportedly resulted in a loss exceeding Rs 2,000 crore for the State Bank of India (SBI), as per insider information.

On June 13, SBI categorized RCOM and the 66-year-old Ambani as "fraud" in line with the Reserve Bank of India's guidelines on Fraud Risk Management and the bank's approved policy for fraud classification, reporting, and management.

In a communication to RCOM, SBI indicated that there were discrepancies in how loans were utilized, involving a complicated network of fund transfers among various group entities.

"We have acknowledged the responses to our show-cause notice, and upon thorough review, it has been determined that the explanations provided by the respondent do not satisfactorily address the non-compliance with the agreed loan terms or the irregularities noted in RCL's account management," the bank stated.

According to RBI regulations, once a bank identifies an account as "fraudulent," it must report this to the RBI within 21 days and also notify the CBI or local police.

Earlier this month, Anil Ambani underwent an extensive nine-hour questioning session at the ED's headquarters in the capital concerning an alleged Rs 17,000-crore loan fraud.

Sources indicate that the ED plans to summon Anil Ambani again for further questioning shortly.

The Chairman of Reliance Group reportedly requested 7-10 days from the investigative agency to provide documentation related to the alleged fraud.

Sources reveal that Anil Ambani has denied any wrongdoing, asserting that all financial decisions were made by his companies' internal board, and he merely signed off on them.

The ED previously conducted searches at locations tied to Anil Ambani's Reliance Group, seizing numerous documents, hard drives, and other digital materials from various sites in Mumbai and Delhi. These raids were initiated as part of a broader investigation into the Yes Bank loan fraud.