CBI Books Case Against Anil Ambani, Reliance Capital
LIC alleges ₹2,684.57 crore loss in Reliance Capital investment fraud case
- CBI registers FIR against Reliance Capital, Anil Ambani and former GMD Satish Seth
- LIC had invested ₹3,900 crore in five non-convertible debentures issued by RCAP
- Agency alleges cheating, fund diversion, criminal breach of trust and falsification of accounts
- Ambani denies any wrongdoing and says he reserves all legal rights
GG News Bureau
New Delhi, 19th Sept: The Central Bureau of Investigation (CBI) has registered a case against Reliance Capital Limited (RCAP), its former chairman Anil Ambani, former group managing director Satish Seth, unidentified public servants and others over an alleged ₹2,684.57-crore fraud involving investments made by the Life Insurance Corporation of India (LIC).
The FIR was registered following a written complaint by LIC, which alleged that the accused entered into a criminal conspiracy involving cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.
According to the CBI, LIC subscribed to five non-convertible debentures issued by RCAP between April 12, 2012, and March 9, 2018, involving a total investment of ₹3,900 crore. The funds were intended for general corporate purposes, funding requirements and refinancing of existing debt.
LIC has alleged that it was induced to make the investments through misrepresentation and that the funds were subsequently diverted. The agency said the alleged transactions resulted in a wrongful loss of ₹2,684.57 crore to LIC and corresponding gains to the accused and other beneficiaries.
The CBI has begun an investigation to establish the roles of the individuals and entities involved, examine the alleged conspiracy and trace the end-use or diversion of the funds.
The agency said it had previously registered eight FIRs against Reliance Communications, Reliance Capital, Reliance Home Finance, Reliance Commercial Finance and Reliance Telecom based on complaints from public sector banks, the Employees’ Provident Fund Organisation and LIC. Six chargesheets have so far been filed in those cases, with seven accused persons arrested, the CBI said.
The cases remain under investigation and are being monitored by the Supreme Court.
Ambani has denied any wrongdoing. A spokesperson said the FIR concerns Reliance Capital and noted that Ambani served as its Non-Executive Director and Chairman from 2005 until November 2021, when the Reserve Bank of India superseded the company’s board and appointed an administrator.
