EPFO Scam Case: EPFO, the Employees’ Provident Fund (PF) body, has taken major action against industrialist Anil Ambani and his Reliance Capital company. In an alleged scam of Rs 1,816 crore (EPFO Scam Case) , the Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Limited, its former chairman Anil Ambani, as well as several unidentified government officials and others. This case is related to the alleged loss of ₹1,816.22 crore to EPFO. This case is going to further increase Anil Ambani’s problems. What exactly is the case?
According to the CBI, the action has been taken based on a complaint from EPFO, which comes under the purview of the Ministry of Labour and Employment. The agency will now investigate the entire investment and related documents.
What’s the whole matter?
According to the investigation agency, Reliance Capital had issued secured non-convertible debentures between 2013 and 2014. It is alleged that EPFO funds worth approximately ₹2,500 crore were invested in these debentures through four portfolio managers. Subsequently, this investment allegedly caused a loss of ₹1,816.22 crore to EPFO, including principal and interest. This includes a principal loss of approximately ₹1,007.55 crore and an interest liability of ₹808.67 crore.
Under which sections was the crime registered?
The CBI has registered a case under provisions related to criminal conspiracy, cheating, breach of trust and corruption. The agency will also investigate whether there were any violations of rules during the investment process and who was involved in it.
What does Anil Ambani say?
Anil Ambani has denied all the allegations in a statement issued by his spokesperson. His spokesperson said that he has not done anything wrong and will exercise all his rights as per the law. The statement also mentioned that he was the non-executive chairman of the company till November 2021.
Why is this case important for EPFO?
EPFO manages the provident funds of lakhs of employees across the country. Therefore, any alleged financial loss related to its investments is considered serious. Therefore, an investigation into the matter has been entrusted to EPFO to determine whether any rules have been violated in the process.