According to the ED, its investigation revealed that the Pali Hill property was consolidated into the RiseE Trust, a private family trust of Anil Ambani’s family members. (File)Industrialist Anil Ambani appeared before the Enforcement Directorate (ED) on Thursday (February 26) for a second round of questioning in connection with an alleged bank fraud-linked money-laundering case. His questioning came a day after the central agency provisionally attached his Mumbai residence, “Abode,” located in Pali Hill and valued at Rs 3,716.83 crore, under the Prevention of Money Laundering Act (PMLA).The ED said the action was part of an ongoing probe related to an FIR by the CBI against Reliance Communications Ltd (RCOM), Ambani, and others for offences under the IPC and the Prevention of Corruption Act. The agency has alleged that RCOM and its group companies availed loans from Indian and foreign lenders, with a total outstanding amount of Rs 40,185 crore. Before attaching his house, the ED had attached assets worth Rs 1,120 crore belonging to companies and individuals linked to the Reliance Anil Ambani Group.Why did ED attach his property?According to the ED, its investigation revealed that the Pali Hill property was consolidated into the RiseE Trust, a private family trust of Anil Ambani’s family members. The agency alleged this move was meant to shield his direct links to the asset, and to protect family wealth from possible recovery by public sector banks whose loans had become non-performing assets (NPAs).The ED’s spokesperson claimed in a statement that this restructuring was designed to ensure “wealth preservation” while shielding the property from personal guarantees Ambani had given for loans to RCOM.Under which section was the house attached?The provisional attachment was made under Section 5 of the Prevention of Money Laundering Act (PMLA). This section empowers the Director of ED or any authorised officer of Deputy Director rank or above to issue an attachment order if they believe that a property has been acquired with the proceeds of crime and might be concealed, transferred, or dealt with to frustrate confiscation proceedings.Once signed, an attachment order is valid for 180 days. If not confirmed by the Adjudicating Authority within that period, it automatically lapses. During this stage, the attachment remains provisional – meaning the accused can continue to reside in or use the property until confirmation is granted. However, in practice, such confirmations are rarely denied.What happens after the attachment?Once the Adjudicating Authority confirms the attachment, the accused gets a chance to appeal:Story continues below this adWithin 45 days, the property owner can challenge the order before the Appellate Tribunal of PMLA.If that appeal fails, the case can go to the High Court and then the Supreme Court.Until a court overturns the attachment, the property remains out of the owner’s control.Also Read | ‘I am not a flight risk’: Anil Ambani files undertaking in Supreme Court amid Rs 40,000 crore fraud probeIf the trial court later convicts the accused, it may order permanent confiscation of the property, transferring ownership to the Central government. In the case of residential properties, the ED can then take possession and ask the occupants to vacate. In reality, many of these attached assets remain unused or locked for years, since a dedicated authority for their upkeep has not yet been established.What action has the ED taken against the Anil Ambani group?The seizure of Ambani’s home follows a series of ED actions targeting various companies under the Reliance Anil Ambani Group. According to the ED, it has so far attached assets worth Rs 12,002 crore linked to the group in the Reliance Home Finance Ltd (RHFL) – Reliance Commercial Finance Ltd (RCFL) – Yes Bank fraud case. Last month alone, properties worth Rs 1,120 crore, including 18 assets of group companies, were attached.Story continues below this adThe agency has accused several Reliance Anil Ambani Group companies, including RCOM, RHFL, RCFL, RIL, and Reliance Power of diverting public funds and violating loan conditions.According to the ED;Between 2017 and 2019, Yes Bank invested around Rs 5,010 crore in instruments of RHFL and RCFL, which later became non-performing investments.Loans taken from one bank were allegedly used to repay other loans, routed through related companies or even parked in mutual funds and fixed deposits.The probe found that the group allegedly diverted Rs 13,600 crore to evergreen loans, Rs 12,600 crore to connected parties, and about Rs 1,800 crore into FDs/MFs – later liquidated and rerouted to group entities.What lies ahead?For now, “Abode” remains provisionally attached and under legal scrutiny. The next steps depend on the Adjudicating Authority’s confirmation, expected within 180 days. If confirmed, Anil Ambani could challenge the order through the legal hierarchy, even as the ED continues to question him about how group funds were used and why massive loans ended up as NPAs.Mahender Singh Manral is an Assistant Editor with the national bureau of The Indian Express. He is known for his impactful and breaking stories. He covers the Ministry of Home Affairs, Investigative Agencies, National Investigative Agency, Central Bureau of Investigation, Law Enforcement Agencies, Paramilitary Forces, and internal security. Prior to this, Manral had extensively reported on city-based crime stories along with that he also covered the anti-corruption branch of the Delhi government for a decade. He is known for his knack for News and a detailed understanding of stories. He also worked with Mail Today as a senior correspondent for eleven months. He has also worked with The Pioneer for two years where he was exclusively covering crime beat. During his initial days of the career he also worked with The Statesman newspaper in the national capital, where he was entrusted with beats like crime, education, and the Delhi Jal Board. A graduate in Mass Communication, Manral is always in search of stories that impact lives. ... Read More © The Indian Express Pvt LtdTags:Express Explained