Reliance Infrastructure hit the lower circuit at Rs 275.05 on the BSE, while Reliance Power slipped to a day’s low of Rs 46.49.
The CBI on Saturday conducted search operations at industrialist Anil Ambani’s residence in Mumbai and at the offices of the now-insolvent Reliance Communications, acting on a complaint filed by the State Bank of India. Ambani, through his spokesperson, strongly denied all allegations and said he would defend any charges.
Anil Ambani also stressed that the transactions under investigation date back more than a decade, when he was only a non-executive director, distancing himself from day-to-day management at the time. The spokesperson further pointed out that proceedings against five other non-executive directors in the same matter have already been withdrawn.
Reliance Power and Reliance Infrastructure, in separate statements issued on Sunday, said the Bank of India’s classification of Reliance Communications’ loans as fraud has no bearing on their governance, financials, or business continuity. Both companies highlighted that Ambani has not served on their boards for over three-and-a-half years and that they are independent listed entities with no financial or operational linkages to Reliance Communications.
The companies also emphasised that Reliance Communications has been under the supervision of a committee of creditors led by SBI and a resolution professional for six years, with the matter pending before the National Company Law Tribunal and the Supreme Court.On Friday, Reliance Power shares closed 5% lower, while Reliance Infrastructure ended down 3.5%, as investors reacted to reports of the probe.The developments follow action last month by the Enforcement Directorate, which searched 35 locations linked to Reliance Group as part of a separate investigation into alleged money laundering and diversion of public funds.Also read | Anil Ambani denies ‘fraud’ loan account allegations, says BoI has ‘selectively singled out’ him
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