The CBI has registered a case against Reliance Capital Limited (RCAP), its former chairman and former group managing director Satish Seth, unidentified public servants and others over an alleged Rs 2,684.57-crore fraud linked to investments made by the Life Insurance Corporation of India (LIC). Reliance Group chairman Anil Ambani, however, denied any wrongdoing on Friday.
In a statement, a spokesperson for Ambani 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of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an Administrator.”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 CBI filed the FIR following a written complaint submitted by LIC against RCAP, Ambani, Seth, unidentified public servants and others.
According to the agency, LIC alleged that it invested a total of Rs 3,900 crore in five non-convertible debentures issued by RCAP between April 12, 2012, and March 9, 2018.
The investments were intended for general corporate purposes, meeting funding requirements and refinancing existing debt.
LIC has accused the individuals involved of entering into a criminal conspiracy and committing offences such as cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.
The agency said LIC alleged that it was dishonestly persuaded to invest in RCAP through misrepresentations, following which the funds were allegedly diverted fraudulently.
According to the CBI, the alleged actions resulted in a wrongful loss of Rs 2,684.57 crore to LIC, while providing a corresponding wrongful gain to the accused and other beneficiaries.
The agency said its investigation will look into the roles of everyone involved, including public servants and private individuals. It will also examine the alleged conspiracy and track how the invested funds were ultimately used or allegedly diverted.
The agency 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 based on complaints filed by various public-sector banks, the Employees’ Provident Fund Organisation and LIC.
The CBI said it has so far filed six chargesheets and arrested seven people in connection with these cases.
The investigations are still ongoing and are being monitored by the Supreme Court.
