ED Alleges Massive Fund Diversion in RCOM Case, Puts Proceeds at ₹40,185 Crore

The Enforcement Directorate (ED) on Sunday said it has filed chargesheets in two separate money-laundering cases involving companies and former executives of the Reliance Anil Ambani Group (RAAG).

In the first case, the agency filed a prosecution complaint before a special Prevention of Money Laundering Act (PMLA) court in Dwarka against Reliance Infrastructure Ltd, former RAAG executive Sateesh Seth and others. Seth, who was arrested by the ED in June, is currently in judicial custody.

The case stems from a Mumbai Police Economic Offences Wing FIR alleging that shell companies were created using forged documents and bank accounts to route funds and outward remittances through fictitious invoices linked to overvalued diamond exports. The ED alleged that an organised scheme diverted around ₹187 crore from four NHAI-funded toll-road projects between September and October 2010. The projects included Trichy-Karur, Trichy-Dindigul, Salem-Ulundurpet and Jaipur-Reengus. According to the agency, funds were routed through contractors and shell entities before being layered through diamond traders.

The ED said it has attached immovable properties and equity shares of Reliance Power Ltd, along with land held by Ksheeraabd Constructions, valued at ₹187 crore. In the second case, the agency filed a supplementary chargesheet before a special court at Rouse Avenue in the Reliance Communications Ltd (RCOM) matter. RCOM, Reliance Telecom Ltd (RTL), former executives Sateesh Seth, Gautam Doshi, Amitabh Jhunjhunwala and others have been named as accused.

The case follows multiple CBI FIRs alleging diversion of fund-based and non-fund-based credit facilities. The ED alleged that fresh loans were repeatedly used to repay earlier liabilities, while funds were routed through group companies, conduit entities, bank accounts and liquid mutual funds.

The agency alleged that loan proceeds were diverted to group companies and used for personal assets of promoters overseas, while also being used to artificially inflate RCOM's profits. The ED has quantified the proceeds of crime at ₹40,185 crore and said it has attached assets worth ₹8,078 crore. Further investigation into the role of other individuals is underway.