SBI Commissioned Investigation Flags Suspicious Deals Worth Rs 5,500 Crore Among Anil Ambani Led Reliance Companies

Transactions worth Rs 5,500 crore on the books of Reliance Communications and two other Anil Ambani-led Reliance Group entities have been flagged by a State Bank of India (SBI) commissioned probe and may lead to a further investigation.

Investigations into fund flows at RCom, Reliance Telecom and Reliance Telecom Infrastructure have revealed related party transactions, evergreening of loans and probable preferential dealings with entities at which a few Reliance Group employees are alleged to have been directors.

The probe, which looked at transactions between May 2017 and March 2018, examined over 100,000 entries, for suspected fund diversion.

The investigation report has been tabled before the committee of creditors and questions based on the findings of the report have been raised with the management

At least a dozen transactions seem to hint towards banker facilitation in evergreening of loans by using multiple letter of credit transactions which could be looked at in further detail.

Incidentally, the Anil Ambani-led Reliance Group companies have a debt of over Rs 1 lakh crore with RCom accounting for Rs 49,193 crore, followed by Reliance Telecom at over Rs 24,306 crore.

RCom had entered the bankruptcy process in May, when the National Company Law Appellate Tribunal (NCLAT) vacated a stay on insolvency proceedings against it.