The Enforcement Directorate (ED) on Tuesday carried out searches at six locations linked to Reliance Infrastructure (R Infra) in Maharashtra and Madhya Pradesh as part of an ongoing probe under the Foreign Exchange Management Act (FEMA). The investigation, according to official sources, relates to alleged irregular foreign remittances by the Anil Ambani-led company.
Scope of the Raids
The searches covered premises in Mumbai and Mhow (Indore district) tied to Reliance Infra and its associates. Authorities are examining possible irregularities in cross-border transactions. The probe is part of a larger investigation into financial dealings of the Anil Ambani Group, which has faced scrutiny for alleged fund diversion and non-disclosure practices.
Company Response
In a statement, Reliance Infra clarified that the ED’s action pertains to a 15-year-old matter linked to the Jaipur-Ringus Toll Road (JR Toll Road) EPC contract awarded in 2010 to Prakash Asphaltings & Toll Highways. The company stressed that this was a domestic contract with no foreign exchange element.
Reliance Infra further stated that the project was completed years ago and is currently under the National Highways Authority of India (NHAI), asserting that it has no ongoing links with the contractor. The company added that the investigation has had no impact on its business operations, finances, or stakeholders.
Wider Investigations Against Reliance Group
This is not the first time Reliance Infra has faced regulatory heat. The ED is already investigating alleged financial irregularities and loan diversions exceeding ₹17,000 crore involving multiple Reliance Group companies under the Prevention of Money Laundering Act (PMLA).
The probe was triggered by a SEBI report accusing Reliance Infra of routing inter-corporate deposits (ICDs) through an entity named CLE, without disclosing it as a “related party.” This allegedly enabled fund transfers within group companies without required shareholder or audit approvals.
The group has repeatedly denied wrongdoing, insisting that its financial statements disclosed relevant exposures and that past allegations were based on outdated issues.
Summary
The ED has raided six locations of Reliance Infrastructure in Mumbai and Mhow as part of a FEMA probe into alleged irregular foreign funding. Reliance Infra said the matter relates to a 2010 toll road project with no foreign exchange involvement and dismissed any impact on ongoing operations. The raids add to ongoing scrutiny of the Anil Ambani Group, which already faces multiple investigations over alleged fund diversion worth over ₹17,000 crore.
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