The Central Bureau of Investigation (CBI) has taken major action against industrialist Anil Ambani and Reliance Capital Limited (RCL). The agency has registered an FIR in connection with the ₹1,816.22 crore investment scam involving the Employees’ Provident Fund Organization (EPFO). Unidentified government officials and other private individuals have also been named as accused in the case. The CBI states that preliminary investigations have revealed indications of large-scale financial irregularities.
According to the CBI, this action was taken following a written complaint from the EPFO, which falls under the Ministry of Labor and Employment. It is alleged that Reliance Capital and other accused conspired, committed fraud, breach of trust, and corruption, resulting in losses of crores of rupees to the EPFO. The CBI is currently conducting an in-depth investigation into the entire matter.
Crores of rupees were invested in 2013-14.
According to the investigating agency, during 2013 and 2014, Reliance Capital Limited issued secured non-convertible debentures (NCDs). During that period, the EPFO invested ₹2,500 crore in these debentures through four portfolio managers, including Reliance Capital Asset Management Limited. These investments were to be repaid in 2023 and 2024 upon maturity.
The CBI alleges that the funds provided for the investments were misused. The funds were diverted through fraudulent financial transactions, preventing Reliance Capital from returning investors’ funds on time. According to the investigating agency, this resulted in a direct loss of ₹1,007.55 crore to the EPFO, with interest of ₹808.67 crore added. This means that the EPFO is alleged to have suffered a total loss of approximately ₹1,816.22 crore.
Several cases have already been filed
The CBI stated that seven FIRs have already been filed against other Reliance ADA Group companies: Reliance Communications (RCom), Reliance Home Finance (RHFL), Reliance Commercial Finance (RCFL), and Reliance Telecom (RTL) based on complaints from public sector banks and the LIC. Four chargesheets have been filed in these cases so far, and seven accused have been arrested. The agency states that the role of all relevant officials and private individuals will be investigated in the current case, including the ultimate use and purpose of the EPFO’s invested funds. The investigation is being monitored under the Supreme Court’s directives.