CBI files case against Anil Ambani and Reliance Capital over EPFO losses exceeding 1816 crore rupees

The Central Bureau of Investigation (CBI) has initiated an investigation into alleged losses of over 1816.22 crore rupees to the Employees' Provident Fund Organisation (EPFO).

An FIR was registered against Reliance Capital Limited (RCL) and its former chairman, Anil D. Ambani.

According to officials, this action followed a complaint filed by the Ministry of Labour and Employment of the Union on July 21. This complaint alleged commission of crimes including fraud, criminal conspiracy, and causing illegal damage to the EPFO.

The complaint indicated that the losses arose from EPFO's investments in Non-Convertible Debentures issued by Reliance Capital Limited, as well as from the discovery of materials suggesting fraudulent activities related to these investments.

In response to the complaint, Ambani's representative stated that the CBI FIR pertains exclusively to Reliance Capital Limited. He clarified that Anil Ambani served as a non-executive director/chairman of RCL from 2005 until November 2021, when the company's Board of Directors was replaced by the Reserve Bank of India, which appointed an administrator.

The representative also emphasized that Anil Ambani denies any wrongdoing and reserves all legal rights.

According to the complaint, which is now part of the CBI FIR, RCL issued Non-Convertible Debentures (NCDs) during 2013 and 2014. Based on this, portfolio managers invested a total of 2500 crore rupees on behalf of the EPFO in the aforementioned NCDs, which were due for maturity in 2023 and 2024.

The Ministry of Labour and Employment submitted the complaint after the Enforcement Directorate (ED) reported discovering documentary evidence, and an audit of transactions conducted by BDO India LLP showed signs of fraudulent operations by RCL and its management personnel between December 7, 2019, and December 6, 2021.

The complaint also alleged that various fraudulent operations had previously been identified, leading to the collapse of RCL due to misappropriation of company funds.

It was stated that the ED's investigation preliminarily pointed to a series of transactions involving irregular lending, diversion of funds, deterioration of collateral, and other actions by RCL requiring scrutiny. The complaint concluded that if such behavior is proven during the investigation, it could have significantly contributed to the financial deterioration of RCL, its inability to meet obligations to bondholders, and the subsequent loss to EPFO amounting to 1816.22 crore rupees.

www.aajtak.inJuly 23, 12:09

CBI conducts raids in Chandigarh and Ludhiana regarding fraud case at IDFC First Bank

Teams from the Central Bureau of Investigation (CBI) conducted large-scale checks in Chandigarh and Ludhiana concerning the misappropriation of funds from IDFC First Bank accounts belonging to Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipal Corporation.

Course of Investigation

Five raids were carried out during these inspections. CBI officials searched the homes and operational sites of suspects who allegedly benefited from the fraud involving the funds of the Chandigarh Municipal Corporation and CSCL. Among the individuals checked were government employees of CSCL, including Anhubhu Mishra, as well as private companies related to the investigation.

Seized Evidence

During these operations, the team seized a number of important pieces of evidence and property. The confiscated items include data drives, digital signatures, property-related documents, financial statements, various electronic devices, and other paper materials relevant to the investigation. Specialists are currently analyzing and studying the seized digital records and documents.

Circumstances of the Case in Haryana

At the request of the Haryana state government, the CBI took over the case from the Vigilance and Anti-Corruption Bureau of Haryana. It is alleged that approximately 504 million rupees of public funds from eight departments of the Haryana government were withdrawn using forged certificates of deposit and fraudulent debit transactions. Subsequently, these funds were moved through shell companies.

Case Status and Charges

In the Haryana case, the CBI has already filed a charge sheet against 17 individuals. These individuals include six bank employees from IDFC First Bank and AU Small Finance Bank, three government officials of the Haryana government, two companies, and six private individuals.

Additional Investigations in Chandigarh

Furthermore, the CBI has taken control of two additional cases related to the central district of Chandigarh. The first concerns Chandigarh Smart City Limited (CSCL) and the Chandigarh Municipality. The second relates to the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST). Charge sheets have already been filed for both these cases previously. In the CSCL case, the CBI has charged five bankers, one CSCL employee, and one private individual. Regarding the CREST case, charges were filed against five bankers, two CREST employees, four private individuals, and two companies.

business-standard.comJuly 21, 17:15

Chairman C S Setty states that SBI does not plan further reduction of its stake in SBI Funds Management

Chairman C S Setty announced on Tuesday that the State Bank of India (SBI) does not intend to further reduce its stake in the subsidiary asset management company, SBI Funds Management, following its stock market listing.

Stock Market Debut

SBI Funds Management debuted on the exchanges with moderate success, opening at a price of 613.30 rupees, which was 6.85 percent higher than the placement price of 574 rupees. During the day, the shares closed at 609.75 rupees.

Ownership Structure

Before the IPO, SBI reduced its stake in the management company by approximately 6 percent, while its joint venture partner, global asset manager Amundi, sold about 4 percent of its assets through the offering. After the listing, SBI's stake in the management company stands at 55.46 percent, and Amundi's stake, based in France, reaches 32.56 percent.

IPO Information and Plans

The initial public offering (IPO) worth 9,812 crore rupees became one of the largest public offerings in recent years. Nicolas Calcone, Deputy CEO of Amundi, emphasized the company's commitment to a long-term partnership: 'We are a dedicated and long-term shareholder of SBI Funds Management. We intend to continue strengthening this partnership, growing together, and supporting the company for many years to come.'

Future of Banking Business

Regarding the possibility of listing other SBI subsidiaries, Setty noted that some of the bank's unregistered businesses still need to achieve greater scale and maturity before an IPO decision is made. He also confirmed that the country's largest lender remains focused on its core banking business despite expanding wealth and investment offerings.

Client Base and Strategy

Setty stated that the bank serves over 530 million customers and attracts approximately 60,000–70,000 new customers daily, maintaining the largest market share in both deposits and loans. He clarified that assisting customers in meeting their investment needs does not mean moving away from core banking. The goal is to provide suitable financial products according to customer demands.

Setty also noted that mutual fund penetration among the SBI customer base remains below 4 percent, indicating significant growth potential. The bank primarily distributes products produced by its own subsidiaries, as this allows it to maintain stricter control over product quality and alignment with customer needs, making investment instruments more accessible.