The Central Bureau of Investigation (CBI) has registered a case against Reliance Capital Limited (RCL) in connection with an alleged ₹21,816.22 crore Employees’ Provident Fund Organisation (EPFO) investment fraud. The FIR was filed on the basis of a complaint from the EPFO, functioning under the Ministry of Labour and Employment. Besides the company, the case names former Chairman Anil D. Ambani, unidentified public servants and other persons.
CBI Alleged Diversion of Investment Funds
According to the FIR, the alleged fraud relates to EPFO’s investment of ₹2,500 crore in secured Non Convertible Debentures (NCDs) issued by Reliance Capital during 2013 and 2014 through four portfolio managers, including Reliance Capital Asset Management Ltd. The debentures were scheduled to mature during 2023 and 2024, but the agency alleged that fraudulent transactions and diversion of funds resulted in the company’s failure to redeem the investments.
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Case Included Interest Liability of ₹7,808.67 Crore
The CBI said the total amount involved in the case is ₹21,816.22 crore, comprising ₹21,007.55 crore along with an interest liability of ₹808.67 crore, as stated in the complaint. The agency has invoked provisions relating to criminal conspiracy, cheating, criminal breach of trust and criminal misconduct, and has begun its investigation into the alleged financial irregularities.
Anil Ambani Denied Any Wrongdoing
Responding to the development, a spokesperson for Anil D. Ambani said the FIR pertains to Reliance Capital Limited and noted that Ambani served as the company’s Non-Executive Director and Chairman from 2005 until November 2021, when the Reserve Bank of India (RBI) superseded the board and appointed an administrator. The spokesperson said Ambani denied any wrongdoing and reserved all legal rights available to him. The CBI investigation is expected to examine the allegations and determine the roles of those named in the complaint.
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