Reliance Group responded to an attachment order issued by the Enforcement Directorate (ED) related to a land-forgery compensation scam. The group clarified that the assets mentioned in the ED’s release pertain to Reliance Communications (RCom), a company that disassociated from the Reliance Group six years ago.
A spokesperson for Reliance Group highlighted that the attached assets belong to Reliance Communications, which has been undergoing the Corporate Insolvency Resolution Process (CIRP) since 2019. The company is currently managed by a Resolution Professional overseen by the National Company Law Tribunal (NCLT) and its Committee of Creditors (CoC) headed by the State Bank of India.
Regarding Anil Ambani’s involvement, the spokesperson affirmed that Anil Ambani severed ties with Reliance Communications six years ago and is not associated with the company. The matters concerning RCom’s resolution are sub judice before the NCLT and the Supreme Court.
The group reassured that the ED’s actions will not significantly impact the operations, performance, or business prospects of Reliance Infrastructure or Reliance Power. Both companies are operating normally, focusing on growth, operational efficiency, and maintaining commitment to their stakeholders, which include over 5 million shareholders.
It was also noted that Anil Ambani has not been part of the boards of either company for more than three and a half years.
As per the ED’s statement, the Chennai Zonal Office conducted search operations on November 19 across 15 locations in Chennai, Kancheepuram, and Chengalpattu. The case involves large-scale forgery of land records and fraudulent compensation claims in acquisitions by the National Highways Authority of India (NHAI) and the State Industries Promotion Corporation of Tamil Nadu (SIPCOT).
The investigation originated from FIRs filed in 2021 and 2022, alleging that lands initially designated for public utilities in 1991 by VGP Group entities were fraudulently reclaimed using forged documents by VGS Rajesh. The lands were then resold just before their acquisition, as highlighted by the Madras High Court, which pointed out the substantial loss to the state exchequer.
The ED’s probe revealed a sophisticated modus operandi involving the illegal cancellation of registered deeds, resale of public-utility land through proxy buyers, artificial inflation of land values, and obtaining excessive compensation from NHAI and SIPCOT for projects such as the Bengaluru–Chennai Expressway. The illicit proceeds were allegedly funneled through multiple bank accounts, shell companies, associates, and relatives, with significant cash withdrawals made to obscure the money trail.
The search operations resulted in the seizure of cash amounting to Rs 1.56 crore, bullion valued at Rs 74 lakh, freezing of bank balances totaling Rs 8.4 crore, and shares valued at Rs 7.4 crore. The combined worth of the seized and frozen assets amounted to Rs 18.10 crore.