Anil D Ambani group company, Reliance Home Finance (RHFL) is in focus again. As per an ANI report, Mumbai Police have registered a case against a former director of Reliance Home Finance (RHFL) in connection with an alleged fraud of nearly Rs 150 crore involving Axis Bank.
Axis Bank alleges RHFL used forged documents to secure loans
Axis Bank officials alleged that Reliance Home Finance obtained loans using forged and misleading documents, according to ANI.
Mumbai Police said the company allegedly projected its financial position as strong and stable in order to secure loans from Axis Bank. However, officials claimed that false documents were used during the process to obtain financial assistance.
Investigators further alleged that instead of utilising the loan amount for its intended purpose, Reliance Home Finance diverted the funds to invest in other companies.
“Axis Bank officials told the police that Reliance Home Finance defrauded Axis Bank of approximately Rs 150 crore by using false documents,” Mumbai Police said according to ANI.
Reliance ADA Group firms under CBI, ED scrutiny in alleged fraud cases
The development adds to the mounting legal troubles surrounding Reliance ADA Group companies.
The new accusations come weeks after the Central Bureau of Investigation (CBI) conducted searches at seven premises across Mumbai, Gurugram and Bengaluru in connection with a separate case involving Reliance Communications, another company under the Anil Ambani-led Reliance ADA Group.
The searches targeted residential premises of former CEOs, CFOs and directors who served between 2015 and 2017. Incriminating documents were seized during the searches.
Previously on May 16, A Delhi court has extended the judicial custody of former Reliance ADA Group executive Amitabh Jhunjhunwala and former Reliance Capital CFO Amit Bapna till May 29 in a money laundering case linked to alleged loan fraud at Reliance Home Finance and Reliance Commercial Finance.
The CBI has registered seven cases against companies linked to the Reliance ADAG based on complaints from public sector banks and LIC over alleged fraud involving more than Rs 27,000 crore. The investigation is being monitored by the Supreme Court.
Two senior executives of Reliance Communications, D Vishwanath and Anil Kalya, were also arrested in April in connection with the ongoing investigation and are currently in judicial custody.
With the inputs from ANI