ED attaches Anil Ambani's ‘Abode’ worth over Rs 3,700 cr at Pali Hill

NEW DELHI: In a big blow to Anil Ambani of Reliance group, the ED on Wednesday said it has attached his residential house ‘Abode’ worth over Rs 3,700 crore at Pali Hill, Mumbai in a money laundering case against Reliance Communications Ltd. With this, the total attachment of assets against Ambani and his group entities now exceed Rs 15,700 crore.

“Special Task Force, Headquarters, has provisionally attached the Pali Hill residential property ‘Abode’ of Anil Ambani, worth Rs 3,717 crore under the provisions of Prevention of Money Laundering Act (PMLA),” ED said. Earlier, the agency had attached part of this property to the extent of Rs 473 crore.

The agency is probing Ambani, his wife Tina Ambani and other associates and group entities in multiple money laundering cases. They have been summoned twice but have not appeared before the agency earlier this month. His residences in Mumbai were among scores of premises the ED had earlier searched in connection with its investigation in the Reliance Communication (RCOM) case where fraud of Rs 40,000 crore has been reported by banks, including penalties and outstanding.

“RCOM and its group companies availed loans from domestic and foreign lenders of which a total amount of Rs 40,185 crore is outstanding,” the agency said.

The ED further said that its investigation has revealed that among other assets, the Pali Hill property was aggregated into the RiseE Trust – a private family trust of the members of Anil Ambani’s family. This was done to make it appear as though Anil Ambani is not involved, the agency has said.

“The intended effect of this corporate restructuring was to ensure wealth preservation and resource generation by aggregation of the property in the RiseE trust and shield it from the personal liabilities of Anil Ambani in the form of personal guarantees extended by him to lender banks against the loans sanctioned to RCOM,” according to ED.

The property was intended to be beneficially used and owned by the Anil Ambani family and not for the distressed public banks whose loans turned NPA, it added.

“ED is committed to safeguarding the financial system and protecting public funds by identifying and attaching assets involved in money laundering. Further investigation is in progress,” the agency said.