CBI has registered an FIR against Reliance Capital Limited (RCL) and its former chairman Anil D Ambani for allegedly causing a loss of Rs 1,816.22 crore to the EPFO. (File Photo)The CBI has registered an FIR against Reliance Capital Limited (RCL) and its former chairman Anil D Ambani for allegedly causing a loss of Rs 1,816.22 crore to the EPFO. Ambani, however, denied any wrongdoing, according to a statement issued by his spokesperson.“The CBI has registered a FIR on July 31 on the basis of a written complaint received from the Employees’ Provident Fund Organisation (EPFO), Ministry of Labour & Employment, against M/s Reliance Capital Limited, Mumbai, Anil D. Ambani, its former Chairman, unknown public servants and other unknown persons, for allegedly causing a wrongful loss of Rs 1,007.55 crore, along with an interest liability of Rs 808.67 crore, by committing offences including criminal conspiracy, cheating, criminal breach of trust and criminal misconduct,” a CBI spokesperson said in a statement.“It has been alleged in the complaint that, during 2013 and 2014, RCL issued secured Non-Convertible Debentures (NCDs), in which the EPFO invested Rs 2,500 crore through four portfolio managers including Reliance Capital Asset Management Limited. The NCDs were due to mature during 2023 and 2024,” the spokesperson alleged.“It is further alleged that the accused persons indulged in fraudulent transactions and diversion of funds, resulting in the default in redemption of the NCDs by Reliance Capital Limited and causing a total alleged loss of Rs 1,816.22 crore to the EPFO,” the spokesperson alleged.Responding to the complaint, Ambani’s spokesperson said, “The FIR registered by the CBI pertains to Reliance Capital Limited. Mr Ambani served as a Non-Executive Director/Chairman of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an administrator. Anil Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the spokesperson said.According to the complaint, which is now part of the CBI FIR, during 2013 and 2014, RCL issued secured NCDs. “Pursuant thereto, investments aggregating to Rs 2,500 crore were made by the portfolio managers on behalf of the EPFO in the aforesaid NCDs, with maturity in 2023 and 2024,” the complaint said.The Ministry of Labour and Employment sent the complaint after it was intimated by the Enforcement Directorate (ED) that it had found documentary evidence and a transaction audit conducted by BDO India LLP showed prima facie a number of fraudulent transactions by RCL and the persons in charge of its management during the period from December 7, 2019, to December 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.Story continues below this adAccording to the FIR, the ED probe prima facie indicated a series of transactions involving irregular lending, diversion of funds, impairment of security and other acts by RCL that require investigation. “If established upon investigation, such conduct may have materially contributed to the financial deterioration of RCL, its inability to honour its obligation towards Debenture Holders, and the consequent loss of Rs 1,816.22 crore suffered by EPFO,” the complaint alleged.Mahender Singh Manral is an Assistant Editor with the national bureau of The Indian Express. He is known for his impactful and breaking stories. He covers the Ministry of Home Affairs, Investigative Agencies, National Investigative Agency, Central Bureau of Investigation, Law Enforcement Agencies, Paramilitary Forces, and internal security. Prior to this, Manral had extensively reported on city-based crime stories along with that he also covered the anti-corruption branch of the Delhi government for a decade. He is known for his knack for News and a detailed understanding of stories. He also worked with Mail Today as a senior correspondent for eleven months. He has also worked with The Pioneer for two years where he was exclusively covering crime beat. During his initial days of the career he also worked with The Statesman newspaper in the national capital, where he was entrusted with beats like crime, education, and the Delhi Jal Board. A graduate in Mass Communication, Manral is always in search of stories that impact lives. ... Read More