The Central Bureau of Investigation has filed an FIR against Reliance Capital Limited (RCL) and its former chairman Anil D Ambani for allegedly causing a loss of ₹1,816.22 crore to the Employees' Provident Fund Organisation (EPFO). According to reports from PTI, the action follows a July 21 complaint from the Union Ministry of Labour and Employment alleging commission of offences of cheating, criminal conspiracy and causing wrongful loss to the EPFO. The FIR was registered on the basis of a written complaint received from the EPFO, Ministry of Labour and Employment. The CBI has invoked provisions relating to criminal conspiracy, cheating, criminal breach of trust and criminal misconduct by public servants under the applicable laws. The agency has also named unknown public servants and other unknown persons as accused in the case.
As reported by PTI, the complaint filed by the EPFO alleged that investments aggregating to ₹2,500 crore were made by portfolio managers on behalf of the EPFO in secured Non-Convertible Debentures (NCDs) issued by Reliance Capital Limited during 2013 and 2014. The debentures were scheduled to mature in 2023 and 2024. According to the complaint, material discovered later pointed to suspected fraudulent conduct linked to the investment, which prompted the filing of the case. The Ministry of Labour and Employment forwarded the complaint after being informed by the Enforcement Directorate (ED) that it had found documentary evidence related to the matter. It also cited a transaction audit conducted by BDO India LLP, which reportedly showed prima facie evidence of several fraudulent transactions by RCL and those in charge of its management during the period from December 7, 2019, to December 6, 2021.
The CBI has clarified that the alleged liability totals ₹1,816.22 crore, comprising a principal amount of ₹1,007.55 crore and an interest liability of ₹808.67 crore. According to PTI, Ambani's spokesperson responded to the complaint, stating that the FIR pertains to Reliance Capital Limited where 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of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors and appointed an administrator. The spokesperson emphasized that Anil Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law. The spokesperson noted that the complaint alleges fraudulent conduct connected with EPFO's investment in secured NCDs issued by RCL, which the company denies. The CBI statement further noted that investigation has been taken up to identify the role of all persons involved, including public servants and private individuals, examine the alleged criminal conspiracy, and trace the end use of the invested funds.
As reported by PTI, the ED probe prima facie indicated a series of transactions involving irregular lending, diversion of funds, impairment of security and other acts by RCL that require investigation. The complaint alleged that if established upon investigation, such conduct may have materially contributed to the financial deterioration of RCL, its inability to honour its obligation towards Debenture Holders, and the consequent loss of ₹1,816.22 crore suffered by EPFO. The ED had found various fraudulent transactions during an earlier period as well, which also led to ultimate failure of RCL as a consequence of siphoning off of money of RCL.
The latest EPFO investment case adds to a series of investigations already underway against companies associated with the Reliance ADA Group. According to PTI, the CBI has previously registered seven FIRs against Reliance Communications Limited, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Limited following complaints filed by various public sector banks and the Life Insurance Corporation of India (LIC). As reported by PTI, the CBI has so far filed four chargesheets and arrested seven accused persons in earlier Reliance ADA Group cases. Those investigations are being monitored by the Supreme Court. In the latest EPFO investment case, the CBI will continue examining financial transactions, investment decisions, the alleged diversion of funds and the role of all individuals involved. Further legal action, including the identification of additional accused and the filing of supplementary charge sheets, will depend on the findings of the ongoing investigation.
