CBI Investigates Anil Ambani and Reliance Capital for Fraud

The Central Bureau of Investigation (CBI) has initiated a new investigation into Reliance Capital Limited (RCap) and its former chairman Anil Ambani, along with other individuals, for allegedly causing a significant financial loss to the Life Insurance Corporation of India (LIC). The complaint claims that the loss incurred is approximately ₹2,684.5 crore (around $324 million).

The FIR, or First Information Report, also includes Satish Seth, who was the group managing director of the Reliance Anil Dhirubhai Ambani Group, and unnamed public servants. According to reports, the CBI is examining how the accused allegedly misled LIC into investing in RCap by making false representations. The investment involved five non-convertible debentures (NCDs) that amounted to ₹3,900 crore, issued from April 12, 2012, to March 9, 2018, for various corporate needs, including refinancing existing debts.

The LIC has accused Ambani and others of dishonestly inducing it to invest, followed by the alleged diversion of those funds. The CBI is currently exploring the involvement of Ambani and others in this purported crime, focusing on how the invested money was used or diverted.

Anil Ambani’s spokesperson has responded to the allegations by denying any wrongdoing. They stated that Ambani served as a Non-Executive Director and Chairman of RCap from 2005 until the board was replaced by an administrator appointed by the Reserve Bank of India in November 2021. The spokesperson further indicated that Ambani will explore his legal options regarding this case.

Ambani, who previously served as a Member of Parliament in the Rajya Sabha, has faced multiple allegations and investigations by the CBI in the past, with ongoing cases tied to similar allegations connected to other financial entities, including State Bank of India and Punjab National Bank. The Enforcement Directorate is also conducting its investigations under the Prevention of Money Laundering Act in relation to these ongoing cases.

This latest development follows a series of legal challenges for Anil Ambani, with the CBI actively tracking the flow of funds and the sequence of events concerning the alleged fraud involving LIC. Further updates from the CBI and the involved parties are expected as the investigation unfolds.