CBI case against Anil Ambani, Reliance Capital over Rs 1,816 crore EPFO loss
The CBI has registered an FIR against Reliance Capital Limited (RCL) and its former chairman Anil D Ambani over allegations that the company caused a
The CBI has registered an FIR against Reliance Capital Limited (RCL) and its former chairman Anil D Ambani over allegations that the company caused a loss of Rs 1,816.22 crore to the Employees' Provident Fund Organisation (EPFO). The case follows a complaint dated July 21 from the Union Ministry of Labour and Employment, which alleged cheating, criminal conspiracy and wrongful loss to the EPFO. Ambani has denied any wrongdoing through his spokesperson. Read Full Story According to the complaint, now part of the CBI FIR, RCL issued secured non-convertible debentures during 2013 and 2014. The complaint said investments totalling Rs 2,500 crore were made by portfolio managers on behalf of the EPFO in these debentures, with maturity in 2023 and 2024.
The complaint alleged, "The present complaint is being lodged on behalf of EPFO through its authorised officer pursuant to the approval of the competent authority in relation to the substantial loss suffered by the EPFO arising out of its investment in the secured Non-Convertible Debentures issued by Reliance Capital Limited and the subsequently discovered material indicating fraudulent conduct connected with such investment." It said the Ministry of Labour and Employment sent the complaint after being informed by the Enforcement Directorate that it had found documentary evidence and that a transaction audit by BDO India LLP showed, prima facie, a number of fraudulent transactions by RCL and those in charge of its management between December 7, 2019, and December 6, 2021.
The complaint further alleged, "In addition, during an earlier period as well, various fraudulent transactions have been found which also led to ultimate failure of RCL as a consequence of siphoning off of money of RCL." It said the ED probe prima facie pointed to a series of transactions involving irregular lending, diversion of funds, impairment of security and other acts by RCL that require investigation. The complaint added, "If established upon investigation, such conduct may have materially contributed to the financial deterioration of RCL, its inability to honour its obligation towards Debenture Holders, and the consequent loss of Rs 1,816.22 crore suffered by EPFO." Responding to the complaint, Ambani's spokesperson said, "The FIR registered by the CBI pertains to Reliance Capital Limited.
Ambani served as a Non-Executive Director/Chairman of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an administrator." The spokesperson added, "Anil Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law." Ends
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