CBI cases Anil Ambani, Reliance Capital over Rs 2,684 crore LIC loss
CBI has registered a case against Reliance Capital, its former chairman Anil Ambani and others over an alleged Rs 2,684.57 crore fraud involving LIC.
The Central Bureau of Investigation on Friday registered a case against Reliance Capital Limited, the company's former chairman Anil Ambani, former managing director Satish Seth, several unidentified government officials and some others. The case relates to an alleged fraud of about Rs 2,684.57 crore, roughly 2.5 billion dollars, involving the Life Insurance Corporation of India.
In a written complaint, LIC has alleged that between April 12, 2012 and March 9, 2018, Reliance Capital got loans worth Rs 3,900 crore sanctioned from LIC by selling five sets of debentures. At the time, Reliance had said the funds would be used to meet the company's financial requirements, repay old debt and fund day-to-day operations.
However, LIC alleges that after receiving the loans, the company did not use the money for those purposes but instead diverted it to other group companies that were already running losses. Later, when Reliance Capital itself became insolvent, it was unable to repay the LIC loan, causing LIC a loss of Rs 2,684.57 crore.
Anil Ambani's spokesperson has rejected all the allegations. In a statement, the spokesperson said the case pertains solely to Reliance Capital Limited. According to the spokesperson, Anil Ambani served only as a non-executive director and chairman of the board from 2005 to November 2021. In November 2021, the Reserve Bank of India had dissolved the company's board and appointed an administrator. The spokesperson also made clear that Anil Ambani denies any wrongdoing and reserves all his rights under the law.
