CBI Books Anil Ambani, Reliance Capital Over Alleged Rs 2,684-Crore LIC Fraud

The Central Bureau of Investigation has registered a case against Reliance Capital Ltd (RCAP), its former chairman Anil Ambani, former group managing director Satish Seth, unidentified public servants and others over an alleged Rs 2,684.57-crore loss to the Life Insurance Corporation of India (LIC).

The case relates to five non-convertible debentures (NCDs) issued by Reliance Capital between April 12, 2012, and March 9, 2018. LIC has alleged that it invested a total of Rs 3,900 crore in these securities for general corporate purposes, funding requirements and refinancing existing debt. According to the CBI, LIC has alleged that it was induced to make the investments through misrepresentation and that the funds were subsequently diverted.

The complaint alleges offences including criminal conspiracy, cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts. The CBI said the alleged transactions caused a wrongful loss of Rs 2,684.57 crore to LIC and a corresponding wrongful gain to the accused and other beneficiaries. The agency is now examining the alleged conspiracy, tracing the money and investigating how the invested funds were ultimately used.

The FIR comes against the backdrop of the wider financial troubles surrounding Reliance Capital. In November 2021, the Reserve Bank of India superseded the company's board and appointed an administrator. Reliance Capital subsequently went through insolvency proceedings. The CBI has separately registered cases involving several Reliance group companies following complaints from public-sector banks, LIC and the Employees' Provident Fund Organisation (EPFO).

The CBI said it has so far registered eight FIRs, filed six chargesheets and arrested seven accused persons in these related cases. The investigations are being monitored by the Supreme Court.