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In a major crackdown on suspected foreign exchange violations, ED seizes 13 bank accounts of Reliance Infrastructure totaling nearly Rs 55 crore, linked to alleged diversion of NHAI project funds through shell companies and hawala networks.
Funds allegedly diverted from NHAI road projects through shell companies.
New Delhi: The Directorate of Enforcement has taken decisive action against Reliance Infrastructure Limited, seizing 13 bank accounts holding Rs 54.82 crore. The move comes as part of an ongoing probe into alleged foreign exchange violations and misuse of funds. The seizure was executed under Section 37A of the Foreign Exchange Management Act, reflecting the agency’s strict approach toward alleged financial misconduct.
Investigators allege that R-Infra, through its Special Purpose Vehicles, siphoned funds meant for National Highways Authority of India road projects. The money, instead of being used for construction work, was reportedly routed into Mumbai-based shell companies set up under the names of fake subcontractors. These entities operated through selected bank branches, deliberately avoiding detection by authorities.
The ED claims that once the funds were diverted to shell companies, they were further layered and transferred abroad to the United Arab Emirates. These transactions were allegedly described as payments for polished and unpolished diamonds, but no actual goods were delivered, nor was any legitimate documentation provided. The UAE firms involved reportedly maintained accounts in both UAE and Hong Kong, and were connected to individuals running illegal hawala operations.
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The financial probe revealed that the shell companies associated with this scheme were linked to hawala transactions worth over Rs 600 crore. Investigators are examining how these parallel operations facilitated large-scale diversion of public money and impacted the cash flow of R-Infra’s SPVs, causing bank loans to turn into non-performing assets.
The ED has invoked Section 4 of the Foreign Exchange Management Act in response to alleged unauthorized foreign remittances and diversion of public funds. According to officials, the irregularities caused significant financial losses for lenders and threatened the timely completion of crucial infrastructure projects. The agency is continuing its detailed investigation to identify all individuals and entities involved in the alleged laundering network.
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The alleged financial mismanagement reportedly disrupted operations of R-Infra’s Special Purpose Vehicles, leading to stalled road projects under the NHAI. Banks that had extended loans to these SPVs were affected as the non-performing assets increased, highlighting the broader impact of such alleged corporate misconduct on public infrastructure and the financial system.
The ED has stated that the investigation is ongoing, and further action is expected as more details emerge regarding the network of shell companies, offshore accounts, and hawala operators. Authorities are examining financial records, bank transactions, and company documents to build a comprehensive case against all parties allegedly involved in the scheme.
