ED Files Complaints Against Reliance Communications, Infrastructure

The Directorate of Enforcement (ED) has filed separate prosecution complaints against Reliance Communications Limited (RCOM) and Reliance Infrastructure Ltd (RIL) for alleged fund diversion.

The complaints, filed before the courts in Delhi, accuse RCOM, Reliance Telecom Limited (RTL), and others of offences under the Prevention of Money Laundering Act (PMLA). The ED alleges that the companies fraudulently availed and diverted fund-based and non-fund-based credit facilities.

According to the ED, the investigation covers multiple interconnected transactions, revealing that fresh credit facilities were used to repay, rotate, and evergreen earlier domestic and foreign liabilities instead of the sanctioned end-use. The agency claims that funds were layered through group companies, conduit entities, multiple bank accounts, and liquid mutual funds to service earlier external commercial borrowings and foreign currency convertible bonds.

The ED's investigation found that the fraudulent scheme commenced as early as 2007 and continued thereafter as a connected and continuing course of criminal activity. Loan proceeds were allegedly diverted to group companies, such as Reliance Infrastructure Ltd and Reliance Capital Ltd, and used to purchase personal assets for the promoters outside India.

The ED is seeking confiscation of properties worth ₹8,078.06 crores, which include leasehold and immovable assets in New Delhi, Navi Mumbai, Bhubaneswar, Chennai, and Pune. The PMLA court took cognizance of the main prosecution complaint in this case on June 15, 2026.

In a separate case related to RIL, the ED initiated an investigation based on an FIR registered by the Economic Offences Wing (EOW) in Mumbai. The ED alleges that RIL diverted public funds from four NHAI-awarded toll-road projects, financed through NHAI grants and loans from banks and financial institutions. Approximately ₹187 crores were allegedly siphoned during September-October 2010 through sham arrangements for fictitious sub-contracting work.

The ED has provisionally attached assets valued at ₹187 crores in this case. The agency's actions are part of its efforts to crack down on money laundering and financial fraud in India.

The cases against Reliance Communications and Reliance Infrastructure are significant, as they highlight the ED's commitment to investigating and prosecuting financial crimes. The alleged fund diversion and money laundering schemes involved complex transactions and multiple entities, making them challenging to detect and prosecute.

The ED's investigation and prosecution complaints are expected to have significant implications for the companies and individuals involved. The agency's actions may also serve as a deterrent to others who may be engaging in similar financial crimes.

In conclusion, the ED's complaints against Reliance Communications and Reliance Infrastructure are a major development in the agency's efforts to combat financial fraud and money laundering in India. The cases highlight the importance of effective regulation and enforcement in preventing and detecting financial crimes.

The alleged fund diversion and money laundering schemes involved in these cases are a reminder of the need for vigilance and oversight in the financial sector. The ED's actions demonstrate its commitment to investigating and prosecuting financial crimes, and its efforts are expected to have a positive impact on the integrity of India's financial system.