Reliance Fund Diversion Probe
CBI Files Second Charge Sheet in Alleged ₹7,429-Crore Reliance Home Finance Fraud
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Key Points
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The CBI said it has registered nine FIRs involving Reliance Communications, Reliance Home Finance, Reliance Commercial Finance, Reliance Telecom and Reliance Capital, based on complaints from public-sector banks, LIC and EPFO.
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The agency described the RHFL filing as its seventh chargesheet in Reliance ADA Group cases, following six earlier chargesheets.
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The CBI said the accused were charged under the Indian Penal Code (IPC) with criminal conspiracy and cheating.
India's Central Bureau of Investigation filed a second charge sheet in the Reliance Home Finance case, accusing 11 people and companies of criminal conspiracy and cheating. The CBI alleges that ₹7,429.16 crore borrowed by Reliance Home Finance was illegally routed through intermediary entities to Reliance ADA Group companies, causing major losses to banks and financial institutions Deccan Chronicle.
The charge sheet names three group executives, seven companies, and RHFL's statutory auditor Vijay Napawaliya. This is the CBI's seventh charge sheet in Reliance ADA Group cases, bringing the total number of accused across all filings to 15 India Today.
How ₹7,429 Crore Was Diverted
According to the CBI, Reliance Home Finance borrowed funds from Union Bank of India and other public-sector lenders under specific terms. Instead of using the money as promised, the company routed it through shell companies to Reliance ADA Group entities The 420. This violated the lending agreements and caused direct financial harm to the banks that provided the loans.
Auditor Named in Second Charge Sheet
The CBI named Vijay Napawaliya, a chartered accountant and RHFL's statutory auditor, as one of the 11 accused. Auditors are supposed to catch illegal fund movements and report them. The inclusion of Napawaliya suggests the CBI believes he failed to flag the diversion IBTimes.
Part of a Wider Nine-Case Investigation
This charge sheet is one piece of a much larger CBI probe. The agency has registered nine FIRs involving Reliance Communications, Reliance Home Finance, Reliance Commercial Finance, Reliance Telecom, and Reliance Capital, based on complaints from public-sector banks, LIC, and EPFO Asia Insurance Post. The first charge sheet in the RHFL case named four accused. Today's filing brings the total charged in this branch of the investigation to 15.
Investigation Continues Across Reliance Group
The CBI said its investigation is ongoing. The seven previous charge sheets in Reliance ADA Group cases show the scope of the probe extends far beyond Reliance Home Finance. Charges have been filed under the Indian Penal Code for criminal conspiracy and cheating. Notably, Anil Ambani, the group's chairman, was not named in this second charge sheet Deccan Chronicle.
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