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RCOM loan fraud: Anil Ambani files affidavit in SC; reiterates not to leave country

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New Delhi, Feb 19: Industrialist Anil D. Ambani has filed an undertaking/compliance affidavit before the Supreme Court reiterating that he will not leave the country without prior permission of the apex court in connection with the ongoing probe into alleged large-scale bank loan frauds linked to Reliance Communications Ltd (RCOM) and its group entities.

The affidavit has been filed in a pending public interest litigation (PIL) seeking a court-monitored probe into the allegations that more than Rs 1.50 lakh crore of debt of the Ambani-led RCOM group has been written off and that funds were siphoned off through multiple shell companies.

The affidavit formally reiterates the oral undertaking recorded before the apex court on February 4, when senior advocate Mukul Rohatgi, appearing on his behalf, assured that Ambani would not leave India without prior permission of the top court.

“By way of the present affidavit, I formally reiterate and place on record the said statement by virtue of the present affidavit as an undertaking before this Hon’ble Court,” Ambani stated.

He further deposed on oath: “That I have not left India since July 2025, i.e., since the inception of the present investigations, and presently have no plan or intention to travel outside India.”

He added that if any requirement of foreign travel arises, he would seek prior leave and permission of the Supreme Court before undertaking such travel.

Asserting that he is not a flight risk, the affidavit states: “In view of the above conduct, undertakings, and continued cooperation, it is evident that I am not a flight risk and have no intention, whatsoever, to evade the process of law.”

Ambani also stated that he has been fully cooperating with the investigating agencies. “That I, with utmost bona fide, have been fully cooperating with the investigating agencies in connection with the ongoing investigations and continue to extend complete cooperation,” the affidavit reads.

Referring to the ongoing probe under the Prevention of Money Laundering Act, 2002, he stated that examination under Section 50 of the PMLA is presently being conducted during the pendency of proceedings before the apex court.

“That I have been summoned by the Directorate of Enforcement to appear on 26.02.2025 and I undertake to appear and join the investigation on the said date,” the affidavit said, while also undertaking to fully cooperate with the authorities and “preventing any suggestion of evasion or selective presentation of facts.”

Clarifying his role in the group companies under scrutiny, Ambani submitted: “That I respectfully state that my role in the concerned companies had been that of a Non-Executive Director only, and I was not involved in the day-to-day management or operational affairs of the said companies.”

In the affidavit sworn on February 18, he stated: “That the present affidavit is being filed to ensure clarity, completeness, and procedural transparency in the judicial record with an intent that this Hon’ble Court remains seized of the broader issues arising from the same factual matrix.”

Ambani’s undertaking comes against the backdrop of the Supreme Court’s February 4 order, where a Bench headed by Chief Justice of India (CJI) Surya Kant had expressed serious concern over an “unexplained delay” by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) in probing alleged bank loan frauds involving public funds estimated at around Rs 40,000 crore.

The CJI Kant-led Bench had directed the ED to constitute a Special Investigation Team (SIT) of senior officers and asked both Central agencies to take the investigation to its “logical conclusion” in a time-bound manner, while making it clear that no coercive or harsh orders were being passed at that stage.

During the hearing, apprehensions were raised by advocate Prashant Bhushan that the key accused could flee the country before completion of the probe, following which an undertaking not to travel abroad without apex court permission was recorded.

The Supreme Court had also directed the ED and the CBI to file detailed status reports on the progress of their investigations and questioned why only a single FIR had been registered despite complaints from multiple lenders, observing that each complaint constitutes a separate transaction warranting independent examination.

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FPI selling stands at Rs 53,337 crore in Oct so far amid elevated crude oil prices

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As long as Brent crude remains above $100 a barrel, there will be pressures on the economy and the foreign portfolio investors (FPIs) are likely to sell the dip, analysts said on Sunday.

The total FPI selling in October stands at Rs 53,337 crore so far, and the net FPI investment through the IPO market during this period stands at Rs 5,281 crore.

“The total FPI selling through the exchanges for this year stood at Rs 3,69,164 crore,” said Dr VK Vijayakumar, Chief Investment Strategist, Geojit Investments Ltd.

On the flows front, FIIs remained net sellers for the 10th straight week. For the week ended October 23, FIIs significantly reduced their selling and even turned buyers on two days.

The moderation in US bond yields with the 10-year yield declining from 5.36 per cent to around 5 per cent, appreciation in the rupee to 94.94 to the dollar and the low valuations, particularly of the large-caps, contributed to the moderation in FII selling.

Going ahead, the steady moderation in FII selling offers some comfort, though elevated crude and sharp broader-market weakness keep the downside risk alive.

A significant market trend during the week was the sharp correction in the mid-and small-caps.

The Nifty Mid-cap 100 plunged 5.6 per cent and the Nifty Small-cap 100 crashed 7.3 per cent during the week while the Nifty 50 was relatively resilient with a cut of only 2.35 per cent.

Forced liquidation in the margin-funded long positions in the broader market is rumoured to have triggered the crash in the broader market, said analysts.

The resilience of the large-caps is mainly due to the accumulation of the fairly valued large-caps by the DIIs which are flush with funds.

The high crude prices is acting as a strong headwind for the economy and market, said analysts.

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Gold, silver decline sharply on weekly basis as crude prices rise

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Gold prices dipped 3.28 per cent on a weekly basis, while silver prices declined 7.83 per cent this week, as rising crude oil prices heightened inflation fears.

The rising inflation concerns reinforced expectations that global interest rates will stay higher for longer, prompting a wave of selling across precious‑metals markets.

On Friday, MCX gold futures expiring December declined 0.81 per cent while MCX silver futures for December shed 1.75 per cent. Gold futures stood at Rs 1,42,150, while silver futures stood at Rs 1,96,100 per kg.

Gold saw its steepest weekly decline since June and slipped below the psychologically important $4,000 per ounce level for the first time since mid-July, analysts said.

The selloff in silver intensified over weakness in US technology stocks, particularly AI-linked companies, which triggered margin calls and forced investors to liquidate precious-metal holdings.

Meanwhile, crude oil surged to multi-month highs following renewed attacks on Saudi energy infrastructure and shipping routes, while the Indian rupee surrendered its early-week gains amid rising oil prices and renewed dollar demand.

However, lower prices encouraged physical gold purchases in India during the Dussehra festival, providing some underlying demand support, while Chinese jewellery demand remained subdued.

Market participants forecast that precious metals could remain under pressure if elevated energy prices reinforce inflation concerns and expectations of tighter monetary policy. However, physical demand and any moderation in bond yields could offer support following the recent correction, they said.

Markets largely expect the US Fed to keep interest rates unchanged at the October 27–28 policy meeting, but expectations of another rate hike in December remain elevated, with traders pricing approximately a 78 per cent probability.

Investors are also awaiting the US Personal Consumption Expenditures report next week for additional guidance on inflation and future interest-rate decisions.

Immediate resistance for Comex Gold is placed at $4,070–$4,100 zone, while support lies at $3,970–$4,000 zone, analysts said.

For MCX Gold, immediate resistance is placed at Rs 1,43,000–Rs 1,43,700 zone, while the support lies at Rs 1,40,000–Rs 1,41,000, they added.

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ED raids Hyderabad firms in Rs 326 crore bank fraud probe

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The Directorate of Enforcement (ED), Hyderabad Zonal Office, on Friday conducted search operations at seven premises across Hyderabad, Secunderabad and Medchal-Malkajgiri in Telangana under the Prevention of Money Laundering Act (PMLA), an official statement said on Saturday.

The raids targeted the registered office of M/s Kanakadhara Ventures Pvt. Ltd. (KVPL), the residences of its directors, and premises linked to entities and individuals alleged to have acted as conduits for the diversion of bank funds.

The searches form part of an ongoing investigation into the alleged “misutilisation” and diversion of credit facilities sanctioned to KVPL and its directors, the ED statement said.

The ED case stems from an FIR dated December 8, 2022, registered by the Central Bureau of Investigation, Bank Securities and Fraud Branch (BS&FB), Bangalore, on a complaint from Punjab National Bank.

The FIR alleges offences under Sections 120-B, 420, 468 and 471 of the Indian Penal Code, and provisions of the Prevention of Corruption Act, 1988.

According to the agency, a consortium of banks led by Punjab National Bank — comprising IDBI Bank, Union Bank of India, Andhra Bank (now UBI) and Bank of Baroda — suffered a loss of Rs 326.49 crore.

ED investigations revealed that Bank Guarantee and Letter of Credit facilities granted to KVPL were misused. Funds were allegedly diverted through related and conduit entities on the strength of fabricated steel purchase invoices and transport documents.

The company is also accused of operating bank accounts outside the consortium arrangement without the knowledge of the lending banks, the statement said.

During the searches, officials seized incriminating documents, digital devices and other records related to the diversion and layering of funds. Unaccounted cash amounting to Rs 15 lakh was also recovered.

Multiple immovable properties and investments linked to the case have been identified.

ED said further investigation is underway.

The coordinated action underscores the agency’s continued focus on tracing the proceeds of bank frauds and cracking down on complex money-laundering networks involving corporate entities.

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