Reliance Infra Gets Pre-Cognizance Notice From CBI in Rs 3,000-Crore PMLA Case

Reliance Infrastructure Ltd. is now being served with a pre-cognizance notice from a Special CBI Court in New Delhi for a money laundering complaint of around ₹3,000 crore. The development is linked to an Enforcement Directorate (ED) complaint in relation to their investigation into Reliance Home Finance Limited and others.

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The notice has been issued under Section 223 of the Bharatiya Nagarik Suraksha Sanhita (BNSS), 2023, in connection with allegations under Sections 3 and 4 of the Prevention of Money Laundering Act (PMLA).

Reliance Infra discloses development

Reliance Infrastructure disclosed the development in a regulatory filing to the stock exchanges. It disclosed Regulation 30 of the Securities and Exchange Board of India (SEBI) listing requirements.

This is a matter which the company is currently assessing with legal advice from its legal counsel, the company said.

At this stage, the company cannot know how the ED’s action would affect the company’s financial position, it said.

Reliance Infrastructure is currently assessing the situation and will take the law into account on legal advice, the regulatory statement said.

Matter linked to Reliance Home Finance investigation

The current notice is linked to the larger investigation of Reliance Home Finance Limited and other entities. The ED's complaint is part of proceedings concerning alleged financial irregularities and money laundering.

The development brings more regulatory attention to companies linked to the Reliance ADA Group because investigators are still investigating transactions and financial activity in relation to the case.

Pre-cognizance does not in itself establish guilt. The legal process will determine the allegations and the roles, if any, of the entities involved.

What happens after that?

Reliance Infrastructure will review the notice and now has to respond in court before the Special CBI Court. It has been saying it will take steps to protect its interests, it has said.

The court proceedings and any subsequent legal developments could provide further clarity about the allegations, the entities involved and the potential implications for the company.

For investors, it is a very important development because Reliance Infrastructure is a company with a legal/regulatory responsibility in relation to all these legal and regulatory matters. “No financial impact of the transaction at this stage; we cannot be certain of this,” the company said.

And as legal proceedings proceed and the company responds to the notice, it will remain under close watch.