Anil Ambani to Review SEBI’s Five-Year Ban and Fine Amid Fund Diversion Allegations
New Delhi: Businessman Anil Ambani is currently evaluating the Securities and Exchange Board of India’s (SEBI) recent order, which imposes a five-year ban from capital markets and a substantial fine in connection with alleged fund diversion. According to a spokesperson, Ambani will pursue legal advice to determine the next steps.
The order, issued on August 22, 2024, follows a February 11, 2022, interim ruling by SEBI related to issues with Reliance Home Finance Ltd. Ambani had already resigned from the boards of Reliance Infrastructure Ltd and Reliance Power Ltd as a response to SEBI’s interim order, and has complied with the directives over the past two and a half years.
SEBI’s recent decision includes a fine of Rs 25 crore and a prohibition against Ambani and 24 others from participating in the securities market. The regulator accuses Ambani of orchestrating a scheme to divert funds from Reliance Home Finance, a listed subsidiary of Reliance Group, by extending loans to financially unviable borrowers linked to the promoters.
Reliance Infrastructure Ltd and Reliance Power Ltd, which Ambani previously led, clarified that they were not parties to the SEBI proceedings and that the recent order does not affect their operations.
SEBI’s August 22 ruling alleges that over Rs 9,000 crore in loans from Reliance Home Finance were improperly allocated to non-creditworthy borrowers. The order also impacts several executives connected to Ambani’s group.
The case highlights ongoing challenges for Anil Ambani’s businesses, which have faced significant financial difficulties, including bankruptcy proceedings for major firms within the Reliance Group.
