Introduction
In a major
breakthrough, the Enforcement Directorate (ED) has made its first arrest in the
₹3,000 crore loan fraud case linked to companies of the Anil Ambani-led
Reliance Group. The accused, Partha Sarathi Biswal, managing director of Biswal
Tradelink Pvt Ltd, was taken into custody for submitting fake bank guarantees
worth ₹68.2 crore to secure projects on behalf of Reliance Power.
This
development marks a significant milestone in the investigation, which revolves
around suspected financial irregularities, fake documentation, and questionable
fund transfers involving high-profile corporates.
What Is the Case About?
The ED has been
probing a massive loan fraud case where approximately ₹3,000 crore was
allegedly diverted by firms linked to the Reliance Group. These loans were
reportedly disbursed between 2017 and 2019 and are suspected to have been
obtained through false assurances and forged documents.
Investigators
believe that a portion of the fraudulent activity involved the use of fake bank
guarantees submitted to win energy contracts, especially from government
entities. The guarantees were found to be backed by forged letters and fake
confirmations.
Who Was Arrested?
Partha Sarathi
Biswal, the managing director of Biswal Tradelink Pvt Ltd, was arrested under
the Prevention of Money Laundering Act (PMLA). His company allegedly created
and submitted fake bank guarantees worth ₹68.2 crore to the Solar Energy
Corporation of India (SECI), enabling Reliance-linked firms to participate in
project bidding.
He was taken
into custody and produced before a special court. The court has granted the ED
his custody for several days to allow further interrogation.
How the Fraud Was Committed
According to
officials, the fraud involved several layers of deception:
- Forged Bank Guarantees: The guarantees were made to look
like they came from a well-known national bank, but were in fact
completely fabricated.
- Fake Email Confirmations: To make the guarantees appear
authentic, confirmation emails were sent using a domain name that closely
resembled the real bank’s domain tricking authorities and stakeholders.
- Undisclosed Bank Accounts: Investigators found that the
accused operated at least seven bank accounts that were not declared to
regulatory authorities.
- Dummy Directors: The company used people as
directors who had no real decision-making power, likely to hide the true
chain of command and responsibility.
- Lack of Records: There were no proper records of
shareholders, financial transactions, or board meetings, which are
mandatory under Indian company law.
Connection to Reliance Power
The fake
guarantees were allegedly arranged on behalf of Reliance Power. In exchange,
Biswal Tradelink reportedly received a payment of ₹5.4 crore from Reliance
Power. This financial link is now a critical focus of the ED’s probe.
It is suspected
that these payments may have been made to secure favorable conditions or
contracts, and further investigation is underway to determine the full extent
of the involvement.
Wider Investigation and Raids
The arrest
follows extensive searches carried out by the ED across multiple cities. These
raids targeted firms and individuals believed to be connected to the loan
fraud. During the raids, documents, electronic records, and other evidence were
collected.
Over 50
companies and more than two dozen individuals are now under the ED's scanner.
The agency is investigating how these companies used forged documents to obtain
large sums of money from financial institutions.
Lookout Circular for Anil Ambani
The day before
the arrest, a lookout circular (LOC) was issued against Anil Ambani,
effectively preventing him from leaving the country. The ED has summoned him
for questioning and is expected to record his statement in the coming days.
The issuance of
the LOC suggests that the agency considers him a key person in the ongoing
investigation, though it does not imply guilt.
The Role of YES Bank
The loans in
question were given to Reliance Group companies by YES Bank during a period
when the bank was facing its own financial troubles. There are suspicions that
some of the loans may have been part of a larger quid-pro-quo arrangement.
Payments were
allegedly made to YES Bank promoters just before the disbursement of the loans,
which raises questions about conflict of interest and possible kickbacks.
What Has Reliance Said?
In a statement
to stock exchanges, Reliance Power distanced itself from the case, suggesting
that the media reports may relate to allegations involving other Reliance Group
companies such as Reliance Communications or Reliance Home Finance.
The company
also emphasized that the allegations are over a decade old and have no
connection with its current operations.
What Happens Next?
Several
developments are expected in the coming days:
- Extended Custody of Biswal: The ED will question Biswal
further to uncover more names, financial trails, and possibly
international links.
- Ambani’s Statement: Anil Ambani is expected to appear
before the ED for questioning. His testimony will be crucial in
determining the next course of action.
- More Arrests Possible: With multiple companies under
scrutiny, the ED may arrest more individuals involved in the submission of
fake documents and financial misreporting.
- Asset Freezes: Properties, bank accounts, and
investments linked to the accused may be frozen if they are found to be
proceeds of crime.
- Company Audits: The ED is also likely to conduct
forensic audits of several companies that received loans or payments
related to the case.
How the Fake Emails Were Caught
One of the most
shocking elements of the case is the use of a spoofed email domain. A domain
almost identical to that of a well-known Indian bank was created and used to
send fake confirmations supporting the forged bank guarantees.
This tactic was
designed to fool the authorities and partner organizations into believing the
guarantees were real. The ED is now investigating who created and managed this
domain and whether it was used in other cases.
Public and Market Reaction
The news has
sent ripples across financial markets. Shares of Reliance Power and other
related companies have seen a dip, as investors reacted to the uncertainty
surrounding the investigation.
Social media is
abuzz with commentary on how such a large-scale fraud could go undetected for so
long. There is also widespread concern about the misuse of public and private
sector resources.
Why This Case Is Important
This case is
being closely watched because it involves:
- A large amount of public money.
- Allegations of fake documentation
at the highest levels.
- The involvement of a major
industrial group.
- Suspected misuse of financial
systems and regulatory gaps.
The arrest has
brought new energy into the investigation and signals that law enforcement
agencies are taking financial crimes seriously.
Simple Breakdown of the Alleged Scam
| 📌 Element | 📝 Detail |
|---|---|
| Total Scam Value | ₹3,000 crore |
| Fake Guarantee Amount | ₹68.2 crore |
| Arrested Individual | Partha Sarathi Biswal (MD, Biswal Tradelink Pvt Ltd) |
| Fake Email Domain Used | s-bi.co.in (vs official sbi.co.in) |
| Payments Received | ₹5.4 crore from Reliance Power |
| Undisclosed Accounts | 7 or more |
| Dummy Directors | Multiple used to sign fake documents |
| Legal Act Involved | Prevention of Money Laundering Act (PMLA), 2002 |
Conclusion
The arrest of
Partha Sarathi Biswal marks a turning point in the ₹3,000 crore loan fraud
investigation. As more layers of the financial web are uncovered, authorities
are expected to follow the money trail to its final destination.
With a travel
ban now in place for Anil Ambani and more arrests on the horizon, the case
could have serious consequences not just for individuals, but for corporate
governance and financial oversight in India.
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