Cobrapost alleges Rs 28,874 crore fund diversion by Reliance ADA Group

Daijiworld Media Network - New Delhi

New Delhi, Oct 30: Investigative website Cobrapost on Thursday alleged that the Anil Ambani-led Reliance ADA Group siphoned off Rs 28,874 crore through a complex web of subsidiaries, shell companies, and offshore entities. According to the report, the group used dozens of Special Purpose Vehicles (SPVs) and entities based in the British Virgin Islands, Cyprus, Mauritius, the US, UK, and Singapore to channel funds to Reliance Innoventure, the group’s main holding company.

Cobrapost claims the funds were diverted via loans to subsidiaries, issuance of debentures and preference shares, and subsequent write-offs of these loans. The report also alleges that US$1.53 billion was transferred to India through suspicious transactions, primarily raised as external commercial borrowings.

Highlighting a specific case, Cobrapost points to the 2008 purchase of a $20 million luxury yacht, allegedly funded by diverting money from Reliance Communication to Reliance Transport & Travels Pvt. Ltd., an ADA Group subsidiary, through multiple layers of transactions to conceal the diversion.

The report identifies several companies implicated in the alleged fund diversion, including Reliance Communication, Reliance Capital, Reliance Home Finance, Reliance Commercial Finance, and Reliance Corporate Advisory Services. According to Cobrapost:

• Reliance Home Finance allegedly diverted Rs 7,965 crore to 49 related entities, ultimately reaching 14 ADA-controlled companies.
• Reliance Commercial Finance allegedly channelled Rs 4,979.9 crore through 27 companies to promoter interests.
• Reliance Corporate Advisory Services reportedly diverted Rs 1,400 crore via zero-interest intercorporate loans.

The Reliance ADA Group, however, has strongly denied the allegations, calling Cobrapost’s report a “malicious and agenda-driven campaign.” The company claimed the media platform’s exposé is intended to tarnish its reputation and mislead stakeholders. It also alleged that Cobrapost, which has been inactive since 2019, was revived with funding from entities with commercial interests in acquiring Reliance Group assets.