CBI registers new case against Anil Ambani:Allegation of ₹3,750 crore fraud from LIC; investment made by providing false information

CBI has registered a new case against Reliance Communications (RCom) and Anil Ambani. This action has been taken based on a complaint from LIC. The investigating agency alleges that Anil Ambani and his company colluded to defraud LIC of approximately ₹3,750 crore. This is the fourth case against RCom and Anil Ambani. CBI has registered an FIR in this case under sections related to criminal conspiracy, fraud, and the Prevention of Corruption Act. LIC was made to invest by providing false information CBI’s investigation has revealed that between 2009 and 2012, Reliance Communications persuaded LIC to invest ₹4,500 crore in Non-Convertible Debentures (NCDs). It is alleged that the company’s management made false claims about its financial status to LIC. Furthermore, the assurance of security and asset cover provided in exchange for the investment was also completely false. Fund misappropriation revealed in forensic audit Following a complaint by LIC in this matter, a forensic audit was conducted. The audit report by BDO India LLP, released on October 15, 2020, has made several revelations… RCom inflated the value of its assets According to the audit report, RCom had significantly inflated the value of its assets. In reality, there was no connection between those assets and the loans taken against them. The CBI states that due to this fraud, LIC incurred losses of over ₹3,750 crore. Three other cases registered against Anil Ambani What are non-convertible debentures (NCDs)? This is a type of loan instrument that companies issue to raise money from the public or institutions. Investors in these receive interest at a fixed rate. They cannot be converted into shares, which is why they are called ‘non-convertible’.