- The CBI registered a case over an alleged $279.8 million loss to LIC.
- LIC alleged that $406.5 million was invested in five RCAP non-convertible debentures.
- LIC alleged that the funds were obtained through "misrepresentation" and later "fraudulently diverted".
- Anil Ambani denied any wrongdoing in the case.
The Central Bureau of Investigation (CBI) has registered a case against Reliance Capital Limited (RCAP), its former chairman, former group managing director Satish Seth, unidentified public servants and others over an alleged $279.8 million loss to the Life Insurance Corporation of India (LIC), while Reliance Group chairman Anil Ambani denied any wrongdoing.
The FIR follows a written complaint from LIC against RCAP, Ambani, Seth, unidentified public servants and others, according to an official statement.
A spokesperson for Ambani said the case related to Reliance Capital Limited and pointed to Ambani’s position at the company before the Reserve Bank of India superseded its board.
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"The FIR registered by the CBI pertains to Reliance Capital Limited. 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of the Board of Reliance Capital Limited from 2005 until November 2021, when the Reserve Bank of India superseded the Board of Directors of the company and appointed an Administrator."
"Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law," the spokesperson added.
According to the CBI, LIC has alleged that between April 12, 2012, and March 9, 2018, it subscribed to five non-convertible debentures (NCDs) issued by RCAP, with the investments totaling $406.5 million.
The investments were made for "general corporate purposes, funding requirements and refinancing of existing debt", the statement said.
LIC has alleged that the accused persons "entered a criminal conspiracy" and committed offences including "cheating, criminal breach of trust, criminal misconduct, diversion/misappropriation of funds and falsification of accounts".
The CBI said LIC alleged that the accused persons dishonestly induced it to invest in RCAP through "misrepresentation" and thereafter "fraudulently diverted the said funds".
The alleged acts caused a "wrongful loss to the tune of Rs 2,684.57 crore to LIC" and corresponding wrongful gain to the accused and other beneficiaries, the statement said.
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The CBI said the investigation would identify the role of all those involved, including public servants and private individuals, examine the alleged criminal conspiracy and trace the end-use or diversion of the invested funds.
The agency said it had earlier registered eight FIRs against Reliance Communications Limited, Reliance Capital Limited, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Limited based on complaints from various public-sector banks, the Employees' Provident Fund Organisation (EPFO) and LIC.
The CBI said it has so far filed six chargesheets and arrested seven accused persons in these cases.
The cases are under investigation and are being monitored by the Supreme Court, it said.
(With inputs from agencies)
