Reliance Infrastructure Ltd.'s stock plunged 5% to a hit the lower circuit at Rs 72.74 within half hour of the opening bell on Monday, following Enforcement Directorate's prosecution complaint against the Anil Ambani-led company.
The steep fall comes after the shares gained 9.9% in the last five sessions. On a year-to-date basis, the stock has fallen 55.8%, and plunged 73.4% in the last 12 months.
The First Information Report (FIR) is regarding shell companies allegedly incorporating and operating via forged documents and bank accounts to funnel finances and make outward remittances through fabricated invoices and over-valued diamond imports.
The ED investigation allegedly revealed an organised scheme to divert public funds from four NHAI-awarded toll-road projects, which included Trichy-Karur (NH-67), Trichy-Dindigul (NH-45), Salem-Ulundurpet (NH-68) and Jaipur-Reengus (NH-11).
The projects received their funds through NHAI grants along with loans from banks and financial institutions.
The agency alleged that approximately Rs 187 crore was diverted during September and October 2010 via sham, post-facto and back-dated arrangements displayed as payments for made-up sub-contracting work.
According to the ED, the funds were transferred from RIL or its project-specific Special Purpose Vehicles (SPVs) and EPC contractors to construction contractors and subsequently to shell entities that were in no way linked with the road construction project.
The agency alleged that documents were later created to make the transactions appear to be genuine project expenditure. The funds were then layered through shell companies and diamond traders.
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