“He has been complying with the said interim order (of February 11, 2022) for the past two and a half years,” the statement said.
On the August 22 order barring him and 24 others from participating in the securities market for five years on charges of diversion of funds, the spokesperson said, “Mr Ambani is reviewing the final order dated August 22, 2024 passed by Sebi in the said matter, and will take appropriate next steps as legally advised.”
The Securities and Exchange Board of India (Sebi) also imposed a fine of Rs 25 crore on Ambani, saying he orchestrated a scheme to “divert” funds from Reliance Home Finance, a listed subsidiary of the Reliance Group conglomerate of which he is chairman.
The ban means that he and the 24 others will not be able to access the stock market and are prohibited from buying, selling or dealing in securities in any other manner, directly or indirectly. In a separate statement, Mumbai-listed Reliance Infrastructure Ltd said it was “neither served nor a party to the proceedings before Sebi in which the order was passed. No directions are given in the order against Reliance Infrastructure Ltd.” “Mr Ambani had resigned from the board of directors of Reliance Infrastructure Ltd pursuant to the interim order dated February 11, 2022 passed by Sebi in the same proceedings. Therefore, the order dated August 22, 2024 passed by Sebi has no bearing on the order.” business and the affairs of Reliance Infrastructure Ltd,” he said. Reliance Power, the other listed company in Anil Ambani’s group, also issued a similar statement saying that Ambani had resigned in 2022 and that Sebi’s latest order has no bearing on it.
In the August 22 order, Sebi had said a “fraudulent” scheme “diverted” funds from Reliance Home Finance, which offers housing and construction loans, by structuring them as loans to non-creditworthy borrowers.
Most of these borrowers were linked to “promoters,” the regulator said.
In July 2006, Anil Ambani and his elder brother Mukesh spun off Reliance Industries Ltd., set up by their father Dhirubhai Ambani. Anil Ambani’s Reliance Group encompassed financial services, infrastructure and telecommunications, while the elder brother kept the traditional business of oil refining and petrochemicals.
In recent years, Anil Ambani has seen three of the group’s largest companies, including Reliance Communications, Reliance Capital and Reliance Infrastructure, experience bankruptcy for unpaid debts.
Sebi has alleged that over Rs 9,000 crore in loans from Reliance Home Finance were made to “nondescript borrowers who had no demonstrable financial capacity to repay anything.”
The other 24 banned include executives of Anil Ambani’s Reliance Group and other unlisted companies linked to him.
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