CBI Registers Cheating Case Against Anil Ambani, Reliance Capital Over ₹1,816 crore EPFO Loss

The Central Bureau of Investigation (CBI) has registered a cheating case against Reliance Capital Limited (RCL), its former chairman Anil Ambani, and unidentified public servants in connection with an alleged loss of ₹1,816 crore to the Employees’ Provident Fund Organisation (EPFO). The case, filed on Saturday, stems from a complaint by EPFO which claimed that its investment in secured non-convertible debentures (NCDs) issued by RCL led to significant losses due to default.

During the financial year 2013-14, EPFO had invested ₹2,500 crore in RCL’s secured NCDs, which were due to mature in 2023-24. According to the CBI, RCL failed to honour its repayment obligations, resulting in a substantial shortfall. The agency’s investigation will focus on the circumstances surrounding the investment and the subsequent default.

RCL’s financial condition deteriorated sharply in 2019, and the company was eventually admitted to the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code. EPFO lodged its claim with the Resolution Professional in 2021. After the National Company Law Tribunal (NCLT) approved the resolution plan in 2024, EPFO recovered ₹1,492 crore of its total dues. However, a sum of ₹1,007 crore in principal and ₹809 crore in interest remained unpaid, according to the complaint.

The case took a new turn when the Enforcement Directorate (ED), which had been investigating RCL in a separate matter, shared its findings with EPFO. Citing these findings and documentary evidence, EPFO alleged that RCL and its management engaged in fraudulent transactions during the period from December 2019 to December 2021, and also in earlier periods. The complaint stated that these transactions ultimately led to the failure of RCL and the siphoning off of its funds.

Responding to the development, a spokesperson for Anil Ambani said that the FIR pertains specifically to Reliance Capital Limited. Ambani served as a non-executive director and chairman of the board from 2005 until November 2021, when the Reserve Bank of India superseded the board and appointed an administrator. The spokesperson asserted that Ambani denies any wrongdoing and reserves all rights available to him under the law.

The EPFO is a statutory organisation that administers the Employees’ Provident Fund, the Employees’ Pension Scheme, and the Employees’ Deposit Linked Insurance Scheme. The corpus of these funds is held and managed by the Central Board of Trustees, which is responsible for investing the money for the benefit of subscribers. The alleged loss in this case has raised questions about the due diligence exercised during the investment decision and the monitoring of such investments.

This case is part of broader legal scrutiny of Reliance Capital’s financial operations. The CBI’s investigation will examine the allegations of cheating and the involvement of public servants, as mentioned in the FIR. Legal experts note that such cases require a thorough examination of documents and witness statements. Under the legal framework, the accused are presumed innocent until proven guilty.

The development is significant for EPFO subscribers and the corporate sector alike, as it underscores the importance of safeguarding public trust funds. The outcome of the investigation will be keenly monitored, and any judicial proceedings will determine the validity of the allegations.