The Central Bureau of Investigation (CBI) on Friday registered an FIR against Reliance Capital Limited (RCAP), its former chairman Anil Ambani, former group managing director Satish Seth, unidentified public servants and others over an alleged Rs 2,684.57-crore fraud involving investments made by the Life Insurance Corporation of India (LIC), with Ambani denying any wrongdoing.
The case was registered following a written complaint from LIC, which has alleged that it was induced through misrepresentation to invest Rs 3,900 crore in non-convertible debentures (NCDs) issued by Reliance Capital and that the funds were subsequently diverted. The allegations are under investigation and have not been adjudicated.
Ambani denies wrongdoing
Responding to the FIR, a spokesperson for Ambani stressed that the case pertains to Reliance Capital and said the industrialist had served as a non-executive director and chairman of its 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of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an Administrator,” the spokesperson said.
“Mr Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the spokesperson added.
Rs 3,900 crore invested
According to the CBI, LIC alleged that between April 12, 2012, and March 9, 2018, it subscribed to five NCDs issued by Reliance Capital, with the investments aggregating to Rs 3,900 crore.
The funds were raised for purposes including general corporate requirements, funding needs and refinancing of existing debt.
LIC has alleged that the accused entered into a criminal conspiracy and committed offences including cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.
According to the complaint cited by the agency, LIC was allegedly induced to invest in the company through misrepresentation, following which the funds were allegedly diverted.
The insurer has claimed that the alleged acts resulted in a wrongful loss of Rs 2,684.57 crore to it and corresponding wrongful gains to the accused and other beneficiaries.
CBI to trace funds
The CBI has now taken up an investigation to establish the roles of those named and unidentified in the case, including private individuals and public servants.
A key focus of the probe will be tracing the end-use of the money invested by LIC and examining the allegation that funds were diverted from their stated purposes.
The agency will also investigate the alleged conspiracy and determine the individual roles, if any, of those named in the FIR.
Registration of an FIR marks the beginning of the criminal investigation and does not by itself establish guilt.
Eight earlier FIRs
The latest case adds to a series of investigations involving companies associated with the Reliance ADA Group.
The CBI said it had earlier registered eight FIRs involving Reliance Communications Limited, Reliance Capital Limited, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Limited.
Those cases were registered on complaints received from public-sector banks, the Employees’ Provident Fund Organisation and LIC.
The agency said it has so far filed six chargesheets and arrested seven accused in these cases.
The investigations remain under way and are being monitored by the Supreme Court, according to the CBI.