New Delhi: The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Ltd, its former chairman Anil Ambani, unknown public servants and other unidentified persons over an alleged Employees’ Provident Fund Organisation (EPFO) investment fraud involving a loss of more than ₹1,816 crore. The agency launched the case following a complaint from the EPFO under the Ministry of Labour and Employment.
According to the CBI, the case pertains to alleged fraudulent transactions linked to EPFO’s investments in secured non-convertible debentures (NCDs) issued by Reliance Capital between 2013 and 2014.
FIR based on EPFO complaint
The CBI said the FIR was registered after receiving a written complaint from the EPFO alleging criminal conspiracy, cheating, criminal breach of trust and criminal misconduct.
The complaint states that EPFO invested ₹2,500 crore in secured NCDs issued by Reliance Capital through four portfolio managers, including Reliance Capital Asset Management Ltd. These debentures were scheduled to mature during 2023 and 2024.
Alleged loss exceeds ₹1,816 crore
According to the investigating agency, the accused allegedly diverted funds through fraudulent transactions, resulting in Reliance Capital defaulting on the redemption of the NCDs.
The CBI has alleged that the EPFO suffered a principal loss of ₹1,007.55 crore, along with an interest liability of ₹808.67 crore, taking the total alleged loss to ₹1,816.22 crore.
Investigation to trace fund diversion
The agency said the investigation would examine the alleged criminal conspiracy, identify the role of all individuals involved—including public servants and private entities—and trace the end use of the invested funds.
Officials said the probe would determine whether the investments were diverted in violation of the terms governing the issuance of the debentures.
Anil Ambani named in FIR
Unlike some earlier CBI investigations involving Reliance Group companies, the latest FIR names Anil Ambani along with Reliance Capital, unknown public servants and other unidentified persons.
A spokesperson for Anil Ambani has denied any wrongdoing, stating that he served as a non-executive chairman of Reliance Capital until the Reserve Bank of India superseded the company’s board in November 2021. The spokesperson added that Ambani reserves all legal rights to contest the allegations.
Part of wider Reliance Group investigations
The CBI noted that this is the latest in a series of investigations involving companies of the Reliance ADA Group.
The agency has previously registered multiple FIRs against Reliance Communications, Reliance Home Finance, Reliance Commercial Finance and Reliance Telecom based on complaints from public sector banks, LIC and other institutions. Several charge sheets have already been filed in those cases, while the investigations are being monitored by the Supreme Court.
What happens next?
The CBI is expected to examine financial records, investment decisions, internal approvals and fund flows connected with the EPFO investment.
The investigation will also seek to establish whether there was any criminal conspiracy involving company officials, intermediaries or public servants in causing the alleged losses to the retirement fund organisation.
Conclusion
The registration of the FIR marks another major development in the ongoing investigations involving Reliance Group companies. With allegations of an ₹1,816.22 crore loss to the EPFO, the CBI’s probe will focus on the alleged diversion of investment funds, the role of those involved and the circumstances that led to the default on Reliance Capital’s debentures.