CBI Files Fraud Case Against Reliance Capital, Alleges EPFO Investment Loss of ₹1,816 Crore ($208 Million)

NEW DELHI — The Central Bureau of Investigation (CBI) has registered a First Information Report (FIR) against Reliance Capital Ltd., its former Chairman Anil Ambani, unknown public servants, and other unidentified individuals over alleged fraud involving investments by the Employees’ Provident Fund Organisation (EPFO).

According to the CBI, the case relates to an alleged wrongful loss of ₹1,007.55 crore (approximately $115.5 million) to the EPFO, along with an interest liability of ₹808.67 crore (approximately $92.8 million), taking the total alleged loss to ₹1,816.22 crore (approximately $208.3 million).

The FIR was registered based on a written complaint from the EPFO, which operates under India’s Ministry of Labour and Employment.

In response, a spokesperson for Anil Ambani said the FIR pertains to Reliance Capital Ltd. and noted that Ambani served as the company’s non-executive director and chairman from 2005 until November 2021, when the Reserve Bank of India superseded the company’s board and appointed an administrator.

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

According to the CBI, Reliance Capital issued secured non-convertible debentures (NCDs) during 2013 and 2014, in which the EPFO invested ₹2,500 crore (approximately $286.9 million) through four portfolio managers, including Reliance Capital Asset Management Ltd.

The debentures were scheduled to mature during 2023 and 2024.

The agency alleged that those involved engaged in fraudulent transactions and diversion of funds, resulting in Reliance Capital’s failure to redeem the debentures and causing financial losses to the EPFO.

The CBI said it is investigating the roles of all individuals involved, including public officials and private parties, examining the alleged criminal conspiracy, and tracing how the invested funds were ultimately used.

The agency also noted that it has previously registered seven FIRs involving other Reliance ADA Group companies, including Reliance Communications Ltd., Reliance Home Finance Ltd., Reliance Commercial Finance Ltd., and Reliance Telecom Ltd., based on complaints from public sector banks and the Life Insurance Corporation of India (LIC).

According to the CBI, it has so far filed four charge sheets and arrested seven individuals in cases related to the Reliance ADA Group.

The agency said the investigations are being monitored by the Supreme Court of India and that it remains committed to conducting a comprehensive and expeditious investigation into the cases. (Source: IANS)