Reliance Capital / Anil Ambani Loan Fraud

The Central Bureau of Investigation, Enforcement Directorate, and SEBI investigated massive alleged financial irregularities involving Reliance Home Finance Ltd and Reliance Capital Ltd, both part of the Reliance ADA Group in Mumbai. Investigators alleged that borrowed funds were diverted through intermediary and conduit entities to various group companies, violating lender terms and causing substantial wrongful losses to public-sector banks and financial institutions. Forensic audits, regulatory reviews, and multiple chargesheets pointed to evergreening of loans, circular transactions, and loans issued to financially weak or newly formed entities without proper due diligence.

The controversy spans multiple probes beginning around 2017 to 2019. SEBI and forensic auditors such as PwC and Grant Thornton found that funds were repeatedly moved through complex chains to mask underlying financial stress and repay older obligations. This led to massive regulatory penalties and multi-agency criminal investigations. Separate cases were registered by the CBI and ED, involving institutions like Yes Bank, Union Bank of India, and the Employees' Provident Fund Organisation, which suffered substantial defaults after investing in company debentures and loans.

Authorities conducted extensive searches, questioned key executives and promoter figures, attached numerous properties worth thousands of crores, and filed multiple chargesheets and prosecution complaints naming various former directors, chief financial officers, auditors, and group companies. Meanwhile, debt-resolution and corporate insolvency processes unfolded, with lenders approving resolution plans and tribunals admitting corporate insolvency proceedings. Representatives for the accused and group entities maintained that transactions were conducted in the ordinary course of business and fully disclosed, while denying all allegations of wrongdoing.

Not yet reported: The final court convictions, ultimate judicial outcomes, and the complete final recovery amounts for all affected institutions are not reported.