CBI Registers Fresh Case Against Reliance Communications, Anil Ambani on LIC Complaint

New Delhi: The Central Bureau of Investigation on Wednesday registered a fresh case against Reliance Communications Ltd, its promoter Anil Ambani, unknown public servants and others for allegedly causing a wrongful loss of Rs 3,750 crore to the Life Insurance Corporation of India.

Officials said the case has been filed under charges of conspiracy, cheating, misappropriation and provisions of the Prevention of Corruption Act, based on a complaint from LIC. This is the fourth case registered against the company and Ambani.

The agency alleged that LIC was induced to subscribe to non-convertible debentures worth Rs 4,500 crore based on alleged misrepresentation by the company regarding its financial position, security and asset cover.

LIC reported a loss of over Rs 3,750 crore and ordered a forensic audit of the company.

The complaint is based on a forensic audit conducted by BDO India LLP, which submitted its report on October 15, 2020. The report alleged misutilisation of funds raised from banks and financial institutions, routing of funds through subsidiaries, misuse of invoice financing, discounting of fictitious bills, siphoning of funds through inter-company transactions and related entities, and overstatement of security.

The agency also cited discrepancies between declared charges and underlying assets.

Officials said the CBI had earlier registered three cases against Reliance Communications Ltd, Ambani and others in connection with alleged bank fraud. The present case pertains to alleged fraud involving LIC.