The CBI has registered an FIR against Reliance Capital and its former leadership over allegations of fund diversion involving LIC's ₹3,900 crore investment. The agency reports a potential loss of ₹2,684.57 crore. This probe concerns past events occurring before the company's insolvency resolution and subsequent acquisition by the Hinduja Group.
The Central Bureau of Investigation (CBI) has registered a case against Reliance Capital Limited, its former chairman Anil Ambani, former group managing director Satish Seth, and others over allegations of financial irregularities. The investigation follows a complaint from the Life Insurance Corporation of India (LIC) regarding non-convertible debenture investments made between April 2012 and March 2018.
FIR Details and Allegations
The CBI's FIR alleges that LIC invested ₹3,900 crore in five non-convertible debenture issues of Reliance Capital during this period. The complaint claims that these investments were secured through misrepresentation and that the funds were subsequently diverted. The agency is investigating charges including criminal conspiracy, cheating, criminal breach of trust, and falsification of accounts. The CBI estimates that these activities caused a wrongful loss of approximately ₹2,684.57 crore to the state-owned insurer.
Corporate Context and Resolution
It is essential to note that the entity involved in this investigation has undergone significant changes in ownership. Reliance Capital entered the corporate insolvency resolution process in November 2021 when the Reserve Bank of India superseded its board. Following the NCLT process, the company was acquired by IndusInd International Holdings Limited (IIHL), part of the Hinduja Group, in 2024. The current investigation pertains to the actions of the management and individuals in charge during the period prior to this resolution process.
Response from Former Management
Anil Ambani has denied any wrongdoing. A spokesperson stated that the FIR relates to the company's past operations and emphasized that Ambani served as a non-executive chairman until the board was superseded by the regulator in November 2021. He continues to reserve his legal rights regarding the allegations.
Ongoing Regulatory Scrutiny
This FIR is part of a broader series of investigations involving companies within the former Reliance Group, including Reliance Communications and Reliance Home Finance, following complaints from various public sector entities and banks. The CBI continues to examine these cases, with several chargesheets already filed in related matters over recent years. As the current investigation remains in the early stages, market participants and stakeholders will watch for further updates regarding the CBI's findings on the end use of the funds and the involvement of the accused individuals.