CBI Books Anil Ambani, Reliance Capital Over ₹1,816 Cr EPFO Loss

The Central Bureau of Investigation (CBI) has filed a case against Reliance Capital Ltd and its former chairman Anil D. Ambani, alleging the company caused a loss of ₹1,816.22 crore ($211 million) to the Employees' Provident Fund Organisation (EPFO), officials said Saturday.

Ambani denied wrongdoing. A spokesperson said the case relates to the company, not him personally, and that he reserves all legal rights.

The action follows a July 21 complaint from the Union Ministry of Labour and Employment. The complaint alleges the retirement body suffered that loss from investments it made in secured non-convertible debentures (NCDs) issued by Reliance Capital Ltd between 2013 and 2014.

Portfolio managers on the EPFO's behalf invested ₹2,500 crore in those NCDs, according to the complaint, which is now part of the CBI's First Information Report (FIR). The debentures were set to mature in 2023 and 2024.

The ministry forwarded the complaint after the Enforcement Directorate (ED) reported finding documentary evidence. A transaction audit by BDO India LLP showed what the complaint calls prima facie evidence of several fraudulent transactions by Reliance Capital and its management during a period running from Dec. 7, 2019, to Dec. 6, 2021.

"In addition, during an earlier period as well, various fraudulent transactions have been found which also led to ultimate failure of RCL as a consequence of siphoning off of money of RCL," the complaint alleged.

Ambani served as a Non-Executive Director and Chairman of Reliance Capital's board from 2005 until November 2021. The Reserve Bank of India superseded the board that month and appointed an administrator.

The complaint says the ED probe indicated a series of transactions involving irregular lending, diversion of funds, and impairment of security by the company. Those acts, the complaint says, "may have materially contributed to the financial deterioration of RCL, its inability to honour its obligation towards Debenture Holders, and the consequent loss of ₹ 1,816.22 crore suffered by EPFO."

Reliance Capital, part of the now-collapsed Reliance Group, had an AlphaScala Alpha Score of 56 (out of 100) as of the last available reading, ranking it in the "Moderate" zone within the Consumer Discretionary sector. The company's stock page tracks its performance following the RBI's takeover and ongoing insolvency proceedings.