CBI Registers FIR Against Reliance Capital in Alleged ₹1,816 Crore EPFO Investment Fraud

The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Ltd (RCL), its former chairman Anil Ambani, unknown public servants and others in connection with an alleged investment fraud that is claimed to have caused a loss of over ₹1,816 crore to the Employees' Provident Fund Organisation (EPFO). The agency has alleged offences including criminal conspiracy, cheating, criminal breach of trust and criminal misconduct.

The FIR was registered on the basis of a complaint received from the EPFO under the Ministry of Labour and Employment. The case relates to the alleged diversion of funds raised through secured Non-Convertible Debentures (NCDs), which ultimately resulted in losses to the provident fund body.

What are the allegations?

According to the FIR, EPFO had invested ₹2,500 crore in non-convertible debentures issued by Reliance Capital between 2012 and 2013. The said debentures were scheduled to mature during 2023 and 2024.

However, the CBI has alleged that the accused persons engaged in fraudulent transactions and diverted the invested funds, leading to Reliance Capital's failure to redeem the NCDs on maturity, resulting in a principal loss of ₹1,007.55 crore to EPFO. Including accrued interest of ₹808.67 crore, the total alleged wrongful loss has been pegged at ₹1,816.22 crore.

Anil Ambani denies wrongdoing

As per media reports, responding to the registration of the case, a spokesperson for Anil Ambani said he had served as a non-executive director and chairman of the board of Reliance Capital from 2005 until November 2021, when the Reserve Bank of India superseded the company's board and appointed an administrator.

The spokesperson said Ambani has denied any wrongdoing and "reserves all rights available to him in law".

Earlier CBI cases against Reliance Group companies

The CBI has previously registered seven FIRs against Reliance Communications Limited, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Limited based on complaints filed by various public sector banks and the Life Insurance Corporation of India (LIC).

According to the agency, four chargesheets have been filed so far in those cases, while seven accused persons have been arrested. The investigations in the Reliance ADA Group cases are currently under the monitoring of the Supreme Court.