Reliance Infra and Associates Alleged to Use Shell Companies for ₹187 crore Fraud

The Enforcement Directorate’s case against Reliance Infrastructure Ltd. highlights the extensive use of shell companies to conceal a ₹187 crore fraud tied to highway construction projects.

According to the ED’s filing, funds earmarked for four NHAI toll‑road projects were first transferred to Reliance Infra's project‑specific Special Purpose Vehicles (SPVs). From there, the money was routed to a chain of shell entities that had no operational link to road building. These entities were later used to generate fictitious invoices and inflated claims, which were presented as legitimate project costs.

The shell companies, some of which were linked to the diamond trade, facilitated the laundering of the diverted amount. The forged documents and back‑dated agreements were prepared to give the appearance of authentic expenditure, allowing the perpetrators to hide the diversion from auditors and regulators.

The ED has also seized assets belonging to Reliance Infra, including real estate, shares of Reliance Power Ltd., and land held by Kshirabd Constructions Pvt. Ltd., as part of the effort to recover the misappropriated funds.