Reliance Capital Booked by CBI Over Alleged ₹2,684-Crore LIC Fraud; Anil Ambani Rejects Charges

The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Limited (RCAP), its former chairman and former group managing director Satish Seth, unidentified public servants.

And others over an alleged ₹2,684.57-crore fraud involving investments made by the Life Insurance Corporation of India (LIC). Reliance Group chairman Anil Ambani has denied any wrongdoing and said he would pursue all legal remedies available to him.

The case was registered on the basis of a written complaint submitted by LIC. The complaint names Reliance Capital, Ambani, Seth, unidentified public servants and other individuals in connection with the alleged financial irregularities.

An Ambani spokesperson said the FIR relates to Reliance Capital and pointed out that Ambani served as the company’s Non-Executive Director and Chairman from 2005 until November 2021. The Reserve Bank of India superseded the company’s board that month and appointed an administrator.

“Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the spokesperson said.

LIC Invested ₹3,900 Crore in RCAP Debentures

The CBI said LIC’s complaint relates to five non-convertible debentures issued by Reliance Capital.

Between April 12, 2012, and March 9, 2018, LIC subscribed to these instruments, investing a total of ₹3,900 crore. According to the agency, the funds were intended for general corporate purposes, funding requirements and refinancing of existing debt.

LIC has alleged that it was induced to make the investments through misrepresentation. The insurer has further alleged that the money was subsequently diverted or misappropriated.

The allegations include criminal conspiracy, cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.

According to the CBI, LIC has alleged that the transactions resulted in a wrongful loss of ₹2,684.57 crore to the insurer, while allegedly providing corresponding wrongful gains to the accused and other beneficiaries.

Investigation to Trace Use of Funds

The CBI said its investigation will examine the role of all individuals and entities involved in the alleged transactions.

The agency will investigate the alleged conspiracy, examine the conduct of public servants and private individuals named in the complaint and trace the end-use of the funds invested by LIC.

The investigation will also look into the alleged diversion of money and determine how the funds were ultimately utilised.

The allegations in the FIR are subject to investigation and subsequent legal proceedings.

CBI Has Filed Six Chargesheets in Earlier Cases

The latest FIR is part of a broader series of CBI investigations involving companies associated with the Reliance Group.

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.

Those cases followed complaints from several public-sector banks, the Employees’ Provident Fund Organisation and LIC.

The CBI said it has so far filed six chargesheets and arrested seven accused persons in connection with those cases.

The investigations remain ongoing and are being monitored by the Supreme Court.