Cobrapost accuses Anil Ambani group of Rs 41,921 crore fraud, company dismisses claims

Cobrapost has accused Anil Ambani's Reliance Group of orchestrating a massive financial fraud exceeding Rs 41,921 crore, allegedly diverting funds from group companies since 2006. The allegations were quickly dismissed by the group, which termed the report a malicious effort to destabilise its stock prices. 

Cobrapost's investigation alleges that approximately Rs 28,874 crore was siphoned off from listed companies within the group, including Reliance Communications, Reliance Capital, Reliance Home Finance, Reliance Commercial Finance, and Reliance Corporate Advisory Services. These funds were reportedly diverted to companies linked to the promoters. 

The portal also claims an additional $1.535 billion (around Rs 13,047 crore) was routed into India fraudulently through offshore entities in Singapore, Mauritius, Cyprus, the British Virgin Islands, the US, and the UK. According to Cobrapost, this was done through a complex network of subsidiaries and shell companies. 

A key part of the investigation centers on a transaction involving Singapore-based Emerging Market Investments & Trading Pte (EMITS). Cobrapost reports that the company received $750 million from a mysterious benefactor, NexGen Capital, and then transferred the funds to Reliance Innoventures, the holding company of Reliance Group, before being dissolved. It suggests this could potentially be linked to money laundering. 

The report cites several violations of corporate governance and financial regulations, including the Companies Act, FEMA, PMLA, SEBI Act, and Income Tax Act. The investigation references filings and court orders from various agencies, such as the Ministry of Corporate Affairs, SEBI, NCLT, RBI, and foreign authorities. 

The repory also alleged the misuse of corporate funds for personal luxury, highlighting a purchase of a $20 million yacht by Anil Ambani in 2008, reportedly through a listed group company. The investigation suggests that group firms used numerous pass-through entities and special purpose vehicles (SPVs) to funnel funds, leaving six key listed companies in financial turmoil. 

In total, Cobrapost alleges that the amount diverted, both domestically and internationally, surpasses Rs 41,921 crore, funneled through a web of pass-through entities, subsidiaries, and offshore vehicles in jurisdictions like the British Virgin Islands, Cyprus, Mauritius, Singapore, the US, and the UK. 

It claimed that the findings were based on official filings and court orders and alleged a massive erosion of public wealth totaling Rs 3.38 lakh crore, factoring in market capitalisation losses and bad loans. 

The Group's response

In response, the Reliance Group firmly rejected the allegations, dismissing them as "recycled" and part of a corporate hit job. The group described Cobrapost as a "dead platform resurrected" by corporate entities with vested interests in acquiring Reliance Group’s assets. The Reliance Group added that the allegations were based on "old, publicly available information" that had already been thoroughly examined by law enforcement agencies such as the CBI, ED, SEBI, and other regulatory authorities.

The group further described the report as "a deliberate campaign of calumny, disinformation, and character assassination" aimed at tarnishing the reputation of the Reliance Group, Anil Ambani, and the company’s 55 lakh shareholders. It also condemned the report as an attempt to manipulate stock prices by creating panic in the markets, which would, according to the group, benefit rival corporate entities vying to acquire Reliance Group assets.

While the Reliance Group did not name specific rival corporations, it did hint at the companies interested in acquiring the group's assets at a reduced price. These include BSES Ltd, the power distribution company based in Delhi, the Mumbai Metro, and the 1,200 MW Rosa power project. The Reliance Group’s listed firms, Reliance Infrastructure Ltd and Reliance Power Ltd, have also filed formal complaints with SEBI, urging the regulator to investigate unusual trading patterns in their shares in light of the report’s claims.

The Reliance Group further stressed that the allegations against it were part of a coordinated effort to create a media frenzy and destabilise the financial standing of its listed companies. By linking the diversion of funds to luxury items and offshore transactions, the report, according to the group, sought to distract from the true operational issues at hand and undermine public trust in the company’s business practices.

(With inputs from PTI)