CBI Registers Case Against Anil Ambani and Reliance Capital in EPFO Loss Probe

On July 31, the Employees' Provident Fund Organisation (EPFO), Ministry of Labour & Employment, Government of India, New Delhi, lodged a written complaint with the Central Bureau of Investigation (CBI), which led to the registration of a First Information Report (FIR).

The Mumbai-based firm M/s Reliance Capital Limited, its former chairman Anil D. Ambani, and other unidentified individuals and public officials are all named in the case. In a release, it was stated that the firm was accused of unlawfully causing a loss of INR 1,007.55 crore and an interest liability of INR 808.67 crore by various criminal offences such as conspiracy, cheating, criminal breach of trust, and misconduct.

Highlights of the Complaint Filed to CBI

The EPFO invested INR 2,500 crore through four portfolio managers, including Reliance Capital Asset Management Limited, in secured Non-Convertible Debentures (NCDs) issued by Reliance Capital Limited (RCL) in 2013 and 2014, according to the CBI. In 2023 and 2024, the NCDs were projected to reach maturity. Additionally, Reliance Capital Limited defaulted on redeeming the NCDs because the accused defendants engaged in fraudulent activities and diverted monies. The agency claimed that the EPFO lost a total of INR 1,816.22 crore due to this mistake.

All parties involved, including public personnel and private citizens, have had their roles investigated. According to CBI, the probe would also look into the financial investments and the purported criminal conspiracy. According to the agency, earlier seven FIRs were registered against RCom, RHFL, RCFL, and RTL by the CBI in response to complaints received from LIC and other public sector banks. So far, seven individuals have been apprehended, and four charge sheets have been filed by the CBI in relation to the Reliance ADA Group cases.

Supreme Court Heading the Investigation

The Supreme Court is keeping tabs on the ongoing investigation into these instances. The CBI is determined to investigate these cases thoroughly and without delay. A representative for Anil D. Ambani has stated that, in light of this new information, the business magnate rejects any "wrongdoing" connected to the FIR and retains all legal rights to do so.

An official from the CBI has confirmed that Reliance Capital Limited is the subject of the First Information Report (FIR). Until the Reserve Bank of India appointed an Administrator to replace the Board of Directors in November 2021, Anil Ambani was a Non-Executive Director and Chairman of the Board of Reliance Capital Limited from 2005 to that date. Mr Ambani holds all legal rights reserved and vehemently rejects any misconduct, the spokesperson added.

This behaviour may have been a major factor in RCL's financial collapse, its failure to pay its debts, and EPFO's loss of INR 1,816.22 crore, as determined by the ongoing investigation.