Why Has CBI Filed FIR Against Anil Ambani, Reliance Capital in ₹1,816 Cr EPFO Loss Case?

The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Ltd (RCL) and its former chairman, Anil D Ambani, over allegations that the company caused a loss of ₹1,816.22 crore to the Employees' Provident Fund Organisation (EPFO) through investments in its non-convertible debentures (NCDs).

The case is based on a complaint filed by the Union Ministry of Labour and Employment on July 21. The ministry has alleged offences including cheating, criminal conspiracy and causing wrongful loss to the EPFO.

Responding to the FIR, an Anil Ambani spokesperson said he denies any wrongdoing and reserves all rights available to him under the law.

EPFO Investment Under Scanner

According to the Labour Ministry's complaint, Reliance Capital issued secured non-convertible debentures during 2013 and 2014. Portfolio managers subsequently invested ₹2,500 crore of EPFO funds in these instruments, which were scheduled to mature in 2023 and 2024.

The ministry alleged that EPFO eventually suffered a loss of ₹1,816.22 crore on these investments.

In its complaint, the ministry said the case was filed after receiving information from the Enforcement Directorate (ED), which had shared documentary evidence and findings from a transaction audit conducted by BDO India LLP. The material allegedly indicated prima facie fraudulent transactions involving Reliance Capital and those managing the company.

ED Findings Form Basis of Complaint

The complaint alleged that fraudulent transactions took place between December 7, 2019, and December 6, 2021, and that similar transactions may have occurred during earlier periods. It claimed these transactions contributed to the financial deterioration and eventual collapse of Reliance Capital through the alleged siphoning of company funds.

The ministry also referred to the ED's findings on alleged irregular lending, diversion of funds, impairment of security and other transactions that require investigation. According to the complaint, if these allegations are established during the investigation, they may have contributed to Reliance Capital's inability to meet its obligations to debenture holders, resulting in losses to the EPFO.

Responding to the allegations, Ambani's spokesperson said the case relates to Reliance Capital and noted that he served as the company's Non-Executive Director and Chairman from 2005 until November 2021, when the Reserve Bank of India superseded the board and appointed an administrator. The spokesperson said Ambani denies all allegations of wrongdoing.