ED Files Complaints Against RCOM and RIL, Seeks Confiscation of Rs 8,078 Crore Assets
The Directorate of Enforcement (ED) on Saturday filed separate Prosecution Complaints before courts in Delhi against Reliance Communications Limited (RCOM), Reliance Infrastructure Ltd (RIL), and associated entities over alleged financial fraud and diversion of loan funds. The agency has prayed for the confiscation of attached properties worth Rs 8,078.06 crore, which include immovable assets situated in Navi Mumbai, New Delhi, Bhubaneswar, Chennai, and Pune.
According to the federal agency, RCOM, Reliance Telecom Limited (RTL), and Reliance Infratel Limited were involved in fraudulently availing and diverting both fund-based and non-fund-based credit facilities. The ED stated that RCOM, RTL, and other entities have been arraigned as accused under various sections of the Prevention of Money Laundering Act (PMLA).
Investigations revealed that fresh credit facilities were repeatedly utilized in a fraudulent manner to repay, rotate, and evergreen earlier domestic and foreign liabilities, rather than being used for their sanctioned purpose. The money was allegedly layered through group companies, purpose-built conduit entities, multiple bank accounts, and liquid mutual funds. These funds were used to service foreign currency convertible bonds (FCCB) and earlier external commercial borrowings, while being falsely projected as legitimate receipts or business expenses.
The agency noted that the fraudulent scheme began by at least 2007 and continued as a connected course of criminal activity. Loan proceeds were diverted to group entities including Reliance Infrastructure Ltd and Reliance Capital Ltd, siphoned off to purchase personal assets for promoters outside India, and used to artificially inflate profits for RCOM. A PMLA court took cognizance of the main prosecution complaint in this case on June 15, 2026.
In a separate case involving Reliance Infrastructure Ltd, the ED initiated its probe following a Mumbai Police Economic Offences Wing (EOW) FIR registered in February this year. That case involves shell companies created using forged documents and bank accounts to route outward remittances under the cover of fictitious invoices and over-valued diamond imports.
The probe into RIL uncovered an organized scheme to divert public funds from four toll-road projects awarded by the National Highways Authority of India (NHAI). Approximately Rs 187 crore was siphoned off during September and October 2010 through sham, back-dated sub-contracting arrangements. The ED provisionally attached Rs 187 crore worth of immovable assets and equity shares in that case on August 3, 2026.
