CBI Files FIR Against Reliance Capital in ₹2,684-Crore LIC Case; Anil Ambani Denies Wrongdoing

The Central Bureau of Investigation (CBI) has registered a case against Reliance Capital Limited (RCAP)

Its former chairman, former group managing director Satish Seth, unidentified public servants and others over an alleged ₹2,684.57-crore fraud linked to investments made by the Life Insurance Corporation of India (LIC).

Reliance Group chairman Anil Ambani, however, has denied any wrongdoing in connection with the case. The FIR was registered following a written complaint filed by LIC. The complaint names Reliance Capital, Ambani, Satish Seth, unidentified public servants and other individuals.

A spokesperson for Ambani clarified that the CBI case relates to Reliance Capital. The spokesperson said Ambani served as a Non-Executive Director and Chairman of the company’s board from 2005 until November 2021, when the Reserve Bank of India superseded the board and appointed an administrator.

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

What Is the LIC Allegation?

According to the CBI, LIC alleged that it invested a total of ₹3,900 crore in five non-convertible debentures issued by Reliance Capital between April 12, 2012, and March 9, 2018.

The investments were intended for purposes including general corporate requirements, funding needs and refinancing of existing debt.

LIC has alleged that the accused conspired to induce the insurer to make the investments through misrepresentation. It further alleged that the funds were subsequently diverted or misappropriated.

The CBI has registered allegations involving cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.

The agency said the alleged transactions resulted in a wrongful loss of ₹2,684.57 crore to LIC, while corresponding wrongful gains were allegedly made by the accused and other beneficiaries.

CBI to Examine Fund Trail

The investigation will focus on the role of everyone allegedly involved in the transactions, including unidentified public servants and private individuals.

The agency will examine the alleged criminal conspiracy, investigate how the investments were handled and trace the end-use of the funds. It will also look into allegations of diversion or misuse of the money invested by LIC.

The registration of an FIR marks the beginning of the investigation, and the allegations will have to be established through the legal process.

Earlier CBI Cases Against Reliance Group Firms

The latest case is part of a wider set of investigations involving companies associated with the Reliance Group.

The CBI said it had previously registered eight FIRs against Reliance Communications Limited, Reliance Capital Limited, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Limited.

These cases were based on complaints filed by various public-sector banks, the Employees’ Provident Fund Organisation and LIC.

According to the agency, six chargesheets have so far been filed in these cases and seven accused persons have been arrested.

The investigations in the cases are continuing and are being monitored by the Supreme Court.