New Delhi: The CBI has registered a case against Reliance Capital Limited (RCAP), its former chairman Anil Ambani, former group managing director Satish Seth, unidentified public servants and others in connection with an alleged Rs 2,684.57-crore fraud involving investments made by the Life Insurance Corporation of India (LIC), officials said on Friday.
Reliance Group chairman Anil Ambani denied any wrongdoing after the CBI registered the case.
A spokesperson for Ambani, in a statement, said, “The FIR registered by the CBI pertains to Reliance Capital Limited. 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of the board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an Administrator.”
“Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the spokesperson added.
The FIR was registered on the basis of a written complaint received from the LIC against RCAP, Ambani, Seth, unidentified public servants and others, an official statement said.
According to the Central Bureau of Investigation (CBI), the LIC has alleged that between April 12, 2012, and March 9, 2018, it subscribed to five non-convertible debentures (NCDs) issued by RCAP, aggregating to Rs 3,900 crore.
The investments were made for “general corporate purposes, funding requirements and refinancing of existing debt”, the statement said.
The LIC has alleged that the accused persons “entered a criminal conspiracy” and committed offences, including “cheating, criminal breach of trust, criminal misconduct, diversion/misappropriation of funds and falsification of accounts”.
The CBI said the LIC has alleged that the accused persons dishonestly induced it to invest in RCAP through “misrepresentation” and thereafter, “fraudulently diverted the said funds”.
The alleged acts caused a “wrongful loss to the tune of Rs 2,684.57 crore to LIC” and corresponding wrongful gain to the accused and other beneficiaries, the statement said.
Investigation has been taken up to identify the role of all those involved, including public servants and private individuals, examine the alleged criminal conspiracy and trace the end-use or diversion of the invested funds, it said.
The CBI said it had earlier registered eight FIRs against Reliance Communications Limited, Reliance Capital Limited, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Limited on complaints received from various public-sector banks, the Employees’ Provident Fund Organisation (EPFO) and the LIC.
The agency said it has so far filed six chargesheets and arrested seven accused persons in these cases.
The cases are under investigation and are being monitored by the Supreme Court, it said.
