The Central Bureau of Investigation has filed a cheating case against Anil Ambani and Reliance Capital regarding alleged losses of ₹2,684.5 crore to LIC. The investigation focuses on debenture investments made between 2012 and 2018. This development adds to the ongoing legal and insolvency challenges already facing the company, which is currently undergoing a resolution process under the NCLT.
The Central Bureau of Investigation (CBI) has registered a case of cheating and criminal conspiracy against Anil D. Ambani, Reliance Capital Limited, and its former Group Managing Director, Satish Seth. The investigation is based on allegations that Life Insurance Corporation of India (LIC) suffered losses totaling ₹2,684.5 crore due to investments in Reliance Capital’s non-convertible debentures between 2012 and 2018.
Details of the CBI Investigation
According to the First Information Report (FIR), LIC subscribed to five debenture issuances by Reliance Capital, investing a total of ₹3,900 crore. The stated intent of these issuances was to fund general corporate requirements and refinance existing debt. However, the investigating agency alleges that LIC was induced to make these investments through misrepresentation of facts. The CBI claims that the funds raised were diverted and not used for the purposes originally stated to the investor. The investigation is currently examining the movement and eventual use of these funds and is also looking into the roles of public servants who may have been involved in the transactions.
Reliance Capital’s Ongoing Resolution Process
This legal development occurs at a time when Reliance Capital is already deep in the insolvency resolution process. The Reserve Bank of India (RBI) superseded the company's board of directors in November 2021 due to governance concerns and payment defaults, appointing an administrator to manage its affairs. Following this, the company was admitted into insolvency proceedings under the National Company Law Tribunal (NCLT).
In recent stages of the resolution, the NCLT has been overseeing the transfer of Reliance Capital to the winning bidder, IndusInd International Holdings Ltd (IIHL), part of the Hinduja Group. The new legal investigation into historical transactions complicates the environment for the firm, as regulatory and investigating agencies continue to scrutinize past financial practices during the period before the administrator was appointed.
Response from Anil Ambani’s Spokesperson
In response to the registration of the FIR, a spokesperson for Anil Ambani noted that the case pertains to Reliance Capital. The spokesperson stated that Ambani served as a non-executive director and chairman of the company’s board until November 2021, when the RBI administrator took control. The spokesperson emphasized that Anil Ambani denies any wrongdoing and that he intends to reserve all legal rights to contest the allegations as the investigation proceeds through the judicial system. As the matter is now under formal investigation, the outcome will depend on the findings of the CBI and subsequent court proceedings.