Anil Ambani case: CBI registers 4th FIR over alleged Rs 3,750 crore fraud against LIC

As per the report, the CBI has filed a case for alleged offenses of conspiracy, cheating, and misappropriation under the provisions of the Prevention of Corruption Act, on a complaint from LIC, making it the fourth case against the company and Anil Ambani.

What are the charges? 

The report stated that central investigative agency has alleged that LIC was fraudulently induced to subscribe to Non-Convertible Debentures (NCDs) worth Rs 4500 crore between 2009 and 2012 on the basis of false representations made by Reliance Communications. and its management regarding the company’s financial health, and the security and asset cover offered to LIC while subscribing to the NCDs.

As a result, Life Insurance Corporation of India suffered a loss of over Rs 3,750 crore and ordered a forensic audit against the company.

The report added that the forensic audit report dated October 15, 2020, conducted by BDO India LLP, reported that RComm and its management had resorted to misutilisation of funds raised from banks and financial institutions, routing of funds through subsidiaries, misuse of sale invoice financing, discounting of fictitious bills, systematic siphoning of funds through inter-company deposits/shell related entities, creating and write-off of fictitious debtors and receivables and gross overstatement of security.

It said there was a mismatch between the charges and the assets. 

Previous FIR against Anil Ambani 

Earlier on March 8, the CBI registered a case against industrialist Anil Ambani in connection with a Rs 1,085 crore bank fraud case. The case was filed on the basis of a complaint by Punjab National Bank, and also names his company, Reliance Communications and its former director, Manjari Ashok Kacker.

The alleged loss includes Rs 621.39 crore to PNB and Rs 463.80 crore to United Bank of India.