ED grills Anil Ambani over FEMA violation
Industrialist and Reliance ADA Group Chairman Anil Ambani on Monday reportedly appeared before the Enforcement Directorate (ED) in connection with a case of alleged violation of the Foreign Exchange Management Act (FEMA), 1999. According to reports, Ambani was questioned by ED officials for several hours in connection with an investigation linked to the alleged contravention of the foreign exchange law.
Why does this story matter?
Ambani was the world's sixth-richest person in 2008—with a $42 billion net worth—ahead of his brother Mukesh Ambani, who is presently the richest person in India and Asia. However, his riches dwindled over the years following multiple scandals, including the 2011 2G scandal. The Securities and Exchange Board of India (SEBI) barred Ambani from the securities market last year, purportedly for siphoning off cash.
ED interrogates Ambani for hours as his associates wait
According to India Today, 64-year-old Ambani appeared at the investigative agency's office in Mumbai's Ballard Estate region to record his testimony in the case, which has been lodged under several provisions of the FEMA. He arrived at the ED's headquarters in the Maharashtra capital at 10:00am as his associates and office executives waited outside for many hours while he was grilled, per reports.
Ambani also facing money laundering case involving Yes Bank
Earlier in 2020, too, the industrialist appeared before the ED in a money laundering case against Yes Bank promoter Rana Kapoor and others. In September 2022, the Bombay High Court granted him relief in a case relating to alleged tax evasion of Rs. 420 crore and asked the Income Tax Department not to take any coercive action against him.
Know about money laundering case
The ED is probing Kapoor and his family for allegedly laundering "proceeds of crime" worth Rs. 4,300 crore. The agency believes that Yes Bank, under Kapoor's tenure, sanctioned sizeable loans that later turned bad in exchange for kickbacks. Kapoor, who stepped down as the bank's CEO in January 2019, was arrested by the agency on March 8 and remains in its custody.
