CBI books Reliance Capital in LIC fraud case; Anil Ambani denies wrongdoing

The CBI has registered an FIR against Reliance Capital, Anil Ambani, Satish Seth and others over alleged diversion of LIC investment funds. Anil Ambani has denied wrongdoing as investigators examine the alleged conspiracy and the end-use of Rs 3,900 crore invested by LIC.

In Short

• LIC invested Rs 3,900 crore in five RCAP debentures from 2012-2018
• The funds were meant for corporate purposes, refinancing and funding needs
• LIC alleged misrepresentation, cheating, breach of trust and falsified accounts

The CBI 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 Rs 2,684.57-crore fraud involving investments made by the Life Insurance Corporation of India (LIC). However, Reliance Group chairman Anil Ambani on Friday denied any wrongdoing.

A spokesperson for Ambani, in a statement, said, "The FIR registered by the CBI pertains to Reliance Capital Limited. 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of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an Administrator."

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

The CBI registered the FIR on the basis of a written complaint from LIC against RCAP, Ambani, Seth, unidentified public servants and others.

According to the CBI, LIC alleged that between April 12, 2012, and March 9, 2018, it subscribed to five non-convertible debentures issued by RCAP, involving a total investment of Rs 3,900 crore.

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

LIC has alleged that the accused entered into a criminal conspiracy and committed offences including cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.

The agency said LIC alleged that it was dishonestly induced to invest in RCAP through misrepresentation and that the funds were subsequently fraudulently diverted.

The alleged acts caused a wrongful loss of Rs 2,684.57 crore to LIC, with a corresponding wrongful gain to the accused and other beneficiaries, according to the CBI.

The CBI said its investigation will examine the role of all those involved, including public servants and private individuals. It will also probe the alleged criminal conspiracy and trace the end-use or diversion of the invested funds.

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 based on complaints from various 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 these cases.

The cases remain under investigation and are being monitored by the Supreme Court.

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