The CBI has registered an FIR against Reliance Capital Limited and its former chairman Anil Ambani. The case relates to an alleged loss of Rs 1,816.22 crore to the EPFO, officials said on Saturday. Ambani has denied any wrongdoing and issued a statement soon after the FIR became public.
The case follows a complaint filed on July 21 by the Union Ministry of Labour and Employment. The complaint alleged offences of cheating, criminal conspiracy and causing wrongful loss to the Employees’ Provident Fund Organisation.
“The present complaint is being lodged on behalf of EPFO through its authorised officer pursuant to the approval of the competent authority in relation to the substantial loss suffered by the EPFO arising out of its investment in the secured Non-Convertible Debentures issued by Reliance Capital Limited and the subsequently discovered material indicating fraudulent conduct connected with such investment,” the complaint alleged.
Ambani cites non-executive role
Ambani’s spokesperson pointed to his role on the board. “The FIR registered by the CBI pertains to Reliance Capital Limited. Mr. Ambani served as a Non-Executive Director/Chairman of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an administrator,” the statement by Anil Ambani’s spokesperson read.
“Mr Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the statement further read.
The complaint is now part of the CBI FIR and it states that RCL issued secured Non-Convertible Debentures in 2013 and 2014. Portfolio managers invested Rs 2,500 crore in these NCDs on behalf of the EPFO. The debentures were set to mature in 2023 and 2024.
ED findings triggered the complaint
The Labour Ministry acted after an intimation from the Enforcement Directorate. The ED said it had found documentary evidence of fraudulent transactions by RCL and its management. A transaction audit by BDO India LLP pointed to the same. The transactions covered the period from December 7, 2019, to December 6, 2021.
“In addition, during an earlier period as well, various fraudulent transactions have been found which also led to ultimate failure of RCL as a consequence of siphoning off of money of RCL,” the complaint alleged.
The ED probe also flagged irregular lending, diversion of funds and impairment of security. The complaint said these transactions require investigation.
“If established upon investigation, such conduct may have materially contributed to the financial deterioration of RCL, its inability to honour its obligation towards Debenture Holders, and the consequent loss of Rs 1,816.22 crore suffered by EPFO,” the complaint alleged.