Major Banking Fraud: CBI Files FIR Against Reliance Home Finance, Jai Anmol Ambani

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The Central Bureau of Investigation (CBI) has registered a bank loan fraud case against Reliance ADA Group firms, namely Reliance Home Finance Ltd. (RHFL) and Reliance Commercial Finance Ltd. (RCFL).

The agency reportedly searched premises of Anil Ambani’s son Jai Anmol Ambani as he was the former director of RHFL at the time of alleged fraud. 

Forensic Audit Uncovers Alleged Fund Diversion and Account Manipulation

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A forensic audit report showed clear instances of systematic fund diversion. The audit was conducted by Grant Thornton India LLP. It covered the period from 1 April 2016 to 30 June 2019. According to the audit examination conducted, borrowed funds were allegedly misapplied and reportedly diverted for other purposes than approved. The report indicated significant manipulation of accounts by the accused.

They were the former promoters and directors of the borrower company. A major finding was the disbursement of corporate loans. Nearly 86% of a large sum was given to "Potentially Indirectly Linked Entities." This involved Rs. 12,573.06 crore in General Purpose Corporate Loans. Approximately 48% of the total loans were corporate loans. This percentage did not align with the core purpose of a housing finance company.

The Union Bank Complaint: From Credit Limits to Non-Performing Asset (NPA)

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The Central Bureau of Investigation (CBI) took Union Bank of India’s (formerly known as Andhra Bank) complaint seriously. The complaint named Reliance Home Finance Ltd. (RHFL) and its directors. RHFL obtained credit limits of Rs. 450 crore from the bank's Mumbai branch. These funds were sanctioned for the company's business operations.

The loan was subject to maintaining strict financial discipline, which included timely repayment and proper interest servicing. The company also had to route all sale proceeds through a designated account. RHFL allegedly failed to honor its repayment commitments.

Consequently, the loan account was declared a Non-Performing Asset. This classification was made on 30 September 2019 and the bank later classified the account as "fraud" on 10 October 2024. This alleged fraud caused a loss of Rs. 228.06 crore to the bank.

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