MCA Orders SFIO Investigation into Anil Ambani Group (ADAG) Over Fund Diversion

The Ministry of Corporate Affairs has instructed the Serious Fraud Investigation Office to launch a probe into key companies of the Anil Dhirubhai Ambani Group, as per The Economic Times.  The investigation will zero in on potential fund diversion exceeding ₹30,000 crore and significant lapses in corporate governance practices.

SFIO Probe Targets 4 ADAG Entities

This decision by the MCA follows complaints from multiple financial institutions and auditors regarding irregularities across the Reliance Anil Dhirubhai Ambani Group. Companies under immediate scrutiny include Reliance Infrastructure, Reliance Communications, Reliance Commercial Finance Ltd, and CLE Pvt Ltd. 

Several discrepancies were previously unearthed during forensic audits initiated post-loan defaults. The SFIO will dig into whether funds were siphoned off using shell entities and whether there was systemic omission by banks, auditors, or rating agencies involved.

Previous Enforcement Action and Asset Attachments by ED on ADAG

Just last week, the Enforcement Directorate seized assets worth over ₹7,500 crore linked to ADAG. Key attached properties include a Pali Hill residence, the Reliance Centre in New Delhi, and 132 acres at the Dhirubhai Ambani Knowledge City valued at ₹4,462.81 crore. This move was conducted under the Prevention of Money Laundering Act based on findings of unlawful fund redirection by several group firms.

Public Fund Diversion and Inter-Group Loan Misuse

The ED stated that RCom and its affiliates had raised substantial funds between 2010 and 2012, with over ₹19,694 crore still outstanding. Evidence points to loan repayments across group firms and fund movement into mutual funds and term deposits, contravening loan conditions. Around ₹13,600 crore was allegedly used for evergreening operations, ₹12,600 crore was moved to related parties, and nearly ₹1,800 crore was put into liquidable instruments.

Read More: ED Attaches DAKC Land Worth ₹4,462 Crore in Anil Ambani Loan Fraud Case!

Yes Bank Exposure and CBI Charges

Yes Bank had invested ₹2,965 crore in RHFL and ₹2,045 crore in RCFL from 2017 to 2019, which later turned non-performing. The CBI’s chargesheet alleged collusion between Anil Ambani and Yes Bank cofounder Rana Kapoor that enabled reciprocal financial dealings. Based on this, SFIO will assess deep-rooted governance inadequacies and any usage of unlawful financial vehicles.

Conclusion

The SFIO probe, ordered by the MCA, highlights serious concerns regarding ADAG’s corporate governance and fund management. With violations pegged at over ₹30,000 crore and assets already frozen by the ED, the investigation marks a pivotal compliance check for conglomerates dealing with public money.

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