(Image source from: Indiatoday.in)
CBI has opened a criminal investigation against Jai Anmol Anil Ambani, the son of businessman Anil Ambani, connected to a scam in banking related to Reliance Housing Finance Limited, known as RHFL. This marks the first instance of legal action being taken against Anil Ambani’s son. Officials indicate that the case also includes RHFL, its previous CEO and director Ravindra Sudhalkar, and some unidentified individuals, including public officials. The report claims wrongdoing, conspiracy, and illegal behavior resulting in a wrongful loss of Rs 228.06 crore to the affected bank. The formal complaint submitted to the CBI says that Jai Anmol Anil Ambani, Ravindra Sudhalkar, and others took part in actions that caused financial harm due to irregularities in lending and payment. The agency has picked up the case under accusations of fraud and abuse of authority.
As per the complaint filed by Anup Vinayak Tarale, who is the Deputy General Manager at Union Bank of India, RHFL sought financial help from the bank’s SCF Branch in Mumbai and claimed to have strong financial results. Based on these claims, the bank approved loans of Rs 450 crore from 2015 to 2019 and invested Rs 100 crore in non-convertible debentures provided by the company. The loans were given with certain conditions about maintaining financial discipline, making payments on time, and correctly sharing details about assets and finances. RHFL was registered as a housing finance company with the National Housing Bank and was publicly listed on the National and Bombay Stock Exchanges in September 2017. The bank has accused the company's past directors, which include Jai Anmol Ambani and former CEO Ravindra Sudhalkar, of misusing the loan money instead of using it as intended.
The loan account was labeled as non-performing on 30 September 2019, and following further investigations, the bank categorized the account as “fraud” on 10 October 2024, later informing the Reserve Bank of India about it. Union Bank claims a wrongful loss of Rs 228.06 crore, accounting for public money. A forensic audit done by Grant Thornton India LLP, covering April 2016 to June 2019, is the main basis for the accusations. The audit revealed significant misuse of borrowed money, finding that nearly 86 percent of the General Purpose Corporate Loans, which totaled Rs 12,573.06 crore, were given to entities that may have indirect connections. A large portion of these funds was reportedly channeled to affiliated companies or used to pay the debts of related parties. The audit also noted transactions where funds flowed back to RHFL and large amounts whose usage could not be tracked due to missing information.
The bank has additionally claimed that the previous directors played a key role in managing the company's daily operations and financial choices during the time the loans were approved and mishandled. As per the complaint, the accused formed a secret agreement with accomplices and unidentified government workers to deceive the bank, tamper with accounts, and abuse public funds. Several companies linked to Reliance Group, such as Reliance Commercial Finance Ltd, Reliance Telecom Ltd, and Reliance Communication Infrastructure Ltd, have also been included as part of the broader network involved in the alleged misappropriation of funds. Union Bank has reported that there hasn't been any determination of accountability among internal staff so far, but there is a chance that the involvement of public workers could come to light during the CBI investigation. All original loan paperwork, audit documents, and related files are said to be securely stored and will be provided to investigators as needed.
The CBI has charged the accused under sections 120-B and 420 of the IPC, as well as sections 13(2) and 13(1)(d) of the Prevention of Corruption Act and Section 7 of the revised PC Act. Inspector Roshan Lal from the CBI’s Banking Security and Fraud Branch in New Delhi has been assigned to lead the investigation. This case represents a major intensification in the ongoing examination of companies that were previously associated with the Reliance Group led by Anil Ambani, introducing new legal challenges with the inclusion of Jai Anmol Ambani in a criminal investigation for the first time.
