According to sources on Saturday, the CBI has filed a formal complaint against Reliance Capital Limited (RCL) and its former chairman, Anil D. Ambani, for allegedly causing the EPFO to lose Rs 1,816.22 crore.
However, in a statement sent by his spokesperson, Ambani denied any misconduct.
According to the officials, the action comes after the Union Ministry of Labour and Employment filed a complaint on July 21 accusing the Employees’ Provident Fund Organization (EPFO) of being the victim of criminal conspiracy, defrauding, and causing unlawful loss.
“The present complaint is being lodged on behalf of EPFO through its authorised officer pursuant to the approval of the competent authority in relation to the substantial loss suffered by the EPFO arising out of its investment in the secured Non-Convertible Debentures issued by Reliance Capital Limited and the subsequently discovered material indicating fraudulent conduct connected with such investment,” the complaint alleged.
Ambani’s representative responded to the accusation by saying, “Reliance Capital Limited is the subject of the CBI’s FIR. From 2005 until November 2021, when the Reserve Bank of India replaced the company’s board of directors and appointed an administrator, Mr. Ambani was a non-executive director and chairman of the board of Reliance Capital Limited. “Anil Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the spokeswoman stated.
The allegation, which is currently included in the CBI FIR, claims that RCL issued secured Non-Convertible Debentures (NCDs) in 2013 and 2014.
According to the complaint, the portfolio managers made investments of Rs 2,500 crore in the aforementioned NCDs on behalf of the EPFO, with maturities in 2023 and 2024.
After the Enforcement Directorate (ED) informed the Ministry of Labour and Employment that it had discovered documentary evidence and that a transaction audit by BDO India LLP revealed prima facie several fraudulent transactions by RCL and the individuals in charge of its management between December 7, 2019, and December 6, 2021, the Ministry of Labour and Employment sent the complaint.
“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. It asserted that a number of transactions including irregular lending, money diversion, security impairment, and other conduct by RCL that call for investigation were initially revealed by the ED investigations.
“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 stated.
Also Read – Actor Aditi Sharma Files Domestic Violence Complaint Against Husband And In-Laws