The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Limited (RCL) and its former chairman Anil D Ambani over allegations of causing a loss of Rs 1,816.22 crore to the Employees’ Provident Fund Organisation (EPFO), officials said on Saturday.

The FIR follows a complaint filed by the Union Ministry of Labour and Employment on July 21, alleging offences including cheating, criminal conspiracy and causing wrongful loss to EPFO.

Ambani, however, has denied any wrongdoing. A statement issued by his spokesperson said the FIR relates to Reliance Capital Limited and that Ambani was not involved in any misconduct.

According to the complaint submitted to the CBI, EPFO suffered losses following investments made in secured Non-Convertible Debentures (NCDs) issued by Reliance Capital.

The complaint stated that RCL had issued secured NCDs during 2013 and 2014, following which portfolio managers invested a total of Rs 2,500 crore on behalf of EPFO. These investments had maturity periods in 2023 and 2024.

The Ministry of Labour and Employment filed the complaint after receiving information from the Enforcement Directorate (ED), which allegedly found documentary evidence and a transaction audit by BDO India LLP indicating possible fraudulent transactions involving RCL and those managing the company.

ED findings cited in complaint

The complaint alleged that the ED investigation found a series of transactions involving irregular lending, diversion of funds, impairment of security and other actions that required further investigation.

It further alleged that fraudulent transactions identified during the probe period, along with earlier transactions, contributed to the financial decline of RCL and its inability to meet obligations towards debenture holders.

The complaint claimed that if established during investigation, such conduct may have contributed to the loss of Rs 1,816.22 crore suffered by EPFO.

Anil Ambani denies allegations

Reacting to the FIR, Anil Ambani’s spokesperson said that Ambani served as a Non-Executive Director and Chairman of the Board of Reliance Capital from 2005 until November 2021.

The spokesperson added that the Reserve Bank of India superseded the company’s Board of Directors in November 2021 and appointed an administrator.

“Anil Ambani denies any wrongdoing, whatsoever, and reserves all rights available to him in law,” the spokesperson said.

The CBI’s FIR has been registered based on allegations made in the complaint, and further investigation will determine the facts of the case.

With PTI inputs