Did ED Raids on Anil Ambani Firms Cause Reliance Infra and Power Shares to Plummet?
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Synopsis
In a shocking turn of events, the raids conducted by the Enforcement Directorate on Anil Ambani and his associates have led to a drastic drop in the shares of Reliance Infrastructure and Reliance Power. Investors are concerned about the implications of these investigations, as the market reacts to the unfolding situation.
Key Takeaways
- Reliance Infrastructure and Reliance Power shares fell by 10% after ED raids.
- Raids were part of an investigation into Rs 3,000 crore loan fraud.
- Both companies have distanced themselves from the investigation.
- Initial findings suggest serious violations in loan approval processes.
- Market response indicates investor concern over corporate governance.
Mumbai, July 25 (NationPress) Following the Enforcement Directorate (ED) conducting raids on various locations associated with industrialist Anil Ambani, the shares of Reliance Infrastructure and Reliance Power experienced a significant decline of 10 percent over two trading sessions, reaching their lower circuit limits of 5 percent on Friday.
The ED's operation targeted more than 35 sites connected to Anil Ambani's Reliance Group (RAAGA Companies) as part of an investigation into the alleged Rs 3,000 crore Yes Bank loan fraud.
In response to the situation, Reliance Power and Reliance Infrastructure released statements clarifying that the ED's inquiries primarily involve Reliance Communications and Reliance Home Finance, which are no longer part of their operations.
On the trading front, Reliance Power dropped 5 percent to Rs 56.72, while Reliance Infrastructure fell to Rs 341.85, consequently hitting its lower circuit cap.
On July 23, 2024, shares of Reliance Infrastructure were trading at Rs 384, but have since plummeted to Rs 341.85. In the aftermath of the raids, shares of Reliance Infrastructure faced lower circuit locks on two occasions, first at Rs 360.05 on July 24, and again at Rs 341.85 today. Reliance Power shares also faced a substantial decline, dropping 7.41 percent during this timeframe.
The initial findings from the ED indicate a deliberate and systematic effort to misappropriate public funds by defrauding banks, investors, shareholders, and public institutions. There are allegations of bribery involving bank officials, including the promoter of Yes Bank Limited, with claims that the promoters conspired to unlawfully divert loans totaling approximately Rs 3,000 crore from Yes Bank between 2017 and 2019.
Regulatory investigations have uncovered serious breaches in the loan approval processes at Yes Bank regarding RAAGA companies, including backdated Credit Approval Memorandums (CAMs) and proposals for investments made without requisite due diligence, violating the bank's credit policies.
Point of View
It is crucial to remain objective and provide our audience with unbiased insights. The recent developments involving the Enforcement Directorate and Anil Ambani highlight significant challenges in corporate governance and regulatory oversight. We must ensure transparency and accountability in the financial sector while understanding the broader implications for investors and the economy.
NationPress
26/07/2025
Frequently Asked Questions
What triggered the decline in Reliance Infra and Power shares?
The decline was triggered by raids conducted by the Enforcement Directorate (ED) on properties linked to Anil Ambani as part of an investigation into the Rs 3,000 crore Yes Bank loan fraud.
How much did the shares drop?
Shares of Reliance Infrastructure and Reliance Power fell by 10 percent over two sessions, hitting their lower circuit limits.
What has Reliance stated about the investigation?
Both Reliance Power and Reliance Infrastructure have distanced themselves from the investigation, indicating that it primarily concerns companies no longer associated with them.
What are the allegations against Yes Bank?
Allegations include a scheme to siphon off public funds through unlawful loan diversions, with possible collusion among bank officials and promoters.
What regulatory issues have been found?
The investigation revealed serious violations in the loan approval processes, including backdated documents and lack of due diligence.
