Reliance Infrastructure shares fall over 2.5%; check latest developments and company's statement

At least six premises of some linked entities in Mumbai and Mhow in Indore were searched, PTI reported, quoting official sources.

The surprise action was part of a Foreign Exchange Management Act (FEMA) investigation being conducted against Reliance Infrastructure on charges of making some illegal remittances abroad, the report said.

The company said in a statement that the ED action was related to a matter "dating back 15 years."

"In 2010, the company had awarded an EPC contract for the construction of the JR Toll Road (Jaipur-Ringus Highway) to Prakash Asphaltings & Toll Highways."

"This was a domestic contract with no foreign exchange involved," it said in a statement.

The work was completed, and the company has no continuing connection or relationship with the said contractor. The toll road has been with the NHAI for the last four years, Reliance Infra said.

The ED is already looking into claims of financial misconduct and loan "diversion" exceeding Rs 17,000 crore by several companies in Anil Ambani's group, including Reliance Infrastructure (R Infra), under the anti-money laundering law (Prevention of Money Laundering Act).

The agency's actions under the PMLA were based on a SEBI report that claimed R Infra moved funds disguised as inter-corporate deposits (ICDs) to Reliance Group companies through a company called CLE.

It was alleged that R Infra did not disclose CLE as its "related party" to avoid approvals from shareholders and audit panels.

The Reliance Group had earlier denied any wrongdoing and said in a statement that the allegation regarding the diversion of ₹10,000 crore to an undisclosed party was a 10-year-old matter, and the company had stated in its financial statements that its exposure was only around ₹6,500 crore.

The company, in its filing to stock exchanges on Tuesday, said the latest FEMA action has had "absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company."

About Reliance Infrastructure

Reliance Infrastructure is a prominent infrastructure company that undertakes projects through multiple Special Purpose Vehicles (SPVs) across high-growth sectors such as power, roads, metro rail, and defence.

The company is part of the Anil Dhirubhai Ambani Group, or Reliance ADA Group.

Reliance Infrastructure is a key player in providing Engineering and Construction (E&C) services for developing power, infrastructure, metro and road projects.