CBI Raids Anil Ambani's Residence in Rs 2,929 Cr Bank Fraud Case
The Central Bureau of Investigation (CBI) raided the Mumbai residence of industrialist Anil Ambani and offices of Reliance Communications (RCom) in connection with an alleged Rs 2,929 crore bank fraud case filed by the State Bank of India. Following SBI's move, the Bank of India also classified RCom's accounts as fraudulent. The investigation centers on allegations of fund diversion and misrepresentation to secure loans, marking a major development in the ongoing probe into the bankrupt telecom firm.
Unpacked:
The CBI investigation was triggered by a formal complaint from the State Bank of India, which alleged that Reliance Communications and Anil Ambani misappropriated bank funds through transactions that violated loan terms, resulting in a loss of over Rs 2,929 crore. A forensic audit report covering 2013-2017 identified these alleged irregularities, prompting the criminal case and subsequent raids.
Anil Ambani has strongly denied all allegations and charges, stating he will defend himself fully. His spokesperson emphasized that the complaint relates to events over a decade ago when Ambani was a non-executive director, asserting he was not involved in daily management. The spokesperson also noted that SBI had withdrawn proceedings against other non-executive directors but singled out Ambani.
This investigation follows other recent legal actions, including the Enforcement Directorate questioning Ambani and searching multiple locations linked to Reliance Group in connection with separate money laundering and public fund siphoning allegations. These actions are part of a broader scrutiny of Ambani’s business dealings by Indian authorities in recent years.
The investigation highlights ongoing concerns about corporate governance and potential financial misconduct at Reliance Communications, which is already bankrupt. Creditors, including major banks, face significant losses, and the case underscores heightened regulatory attention on high-profile corporate defaults in India, potentially impacting future lending practices and oversight.