New Delhi
On Thursday a report alleged that the Reliance Anil Dhirubhai Ambani Group has indulged in a massive banking fraud amounting to more than Rs 28,874 crore since 2006 with impunity.
The Cobrapost report alleges that the fraud involves siphoning off funds that were raised through bank loans, IPOs and bonds by listed ADA Group companies. In addition, about $1,535 million raised abroad was routed to India in a fraudulent manner. This includes $750 million a mysterious benefactor company, NexGen Capital, advanced to Emerging Market Investments & Trading Pte (EMITS) of Singapore during a temporary custody arrangement with Reliance Innoventures, the holding company of the ADA Group, Cobrapost further alleged in its investigation report which has been posted on its website.
The entire sum of $750 million was routed to India and made to disappear, so were the subsidiaries through which diversion of funds was effected to Reliance Innoventures, the holding company of the ADA Group, an activity which can potentially classify as money laundering. Similarly, $785 million, raised in external commercial borrowings, found its way into various ADA Group companies, taking the total to US$ 1,535 million, the Cobrapost report alleges.
Reliance ADA group issued a rebuttal to the report, describing Cobrapost’s expose as a malicious and agenda-driven campaign and alleging that the media platform’s so-called expose is a deliberate attempt to damage the group’s reputation and mislead stakeholders. The Anil Ambani-led company alleged Cobrapost has been dormant since 2019 and its revival is fully funded by entities with direct commercial interest in acquiring Reliance Group assets.
The Cobrapost report further alleges that ADA Group companies and their key management personnel have committed the fraud in flagrant violation of various laws such as the Companies Act of 2013, Foreign Exchange Management Act (FEMA).