Anil Ambani challenges SEBI's ₹625 crore fine
Anil Ambani and a few others have filed an appeal against the Securities and Exchange Board of India's (SEBI) order, which slapped a massive fine of over ₹625 crore. The Securities Appellate Tribunal will hear the appeal, along with connected matters on October 18. The legal action comes days after SEBI barred Ambani and others from the securities market for five years over fund misappropriation from Reliance Home Finance Ltd (RHFL).
SEBI's investigation into RHFL's alleged fund diversion
SEBI had conducted a detailed probe into the allegations against Ambani and RHFL. The market regulator's 222-page report raised serious concerns over RHFL's lending practices, observing that loans worth hundreds of crores were approved for companies with little or no financial backing. RHFL's loan portfolio skyrocketed from ₹3,742.60 crore in 2017-18 to ₹8,670.80 crore in 2018-19. This resulted in widespread defaults and greatly increased the company's own debt obligations.
SEBI report highlights procedural flaws in RHFL's operations
The SEBI report also flagged major procedural lapses in loan applications, such as incomplete documentation and insufficient eligibility checks. Despite these lapses, RHFL's credit committees continued to approve loans. This raised further questions about governance within the organization. The investigation was launched after several complaints of fund diversion at RHFL, exposing a disturbing trend of hasty loan approvals.
Other individuals and entities also face hefty fines
Apart from Ambani, other accused in the case including Amit Bapna, Ravindra Sudhalkar, and Pinkesh R. Shah also face hefty fines between ₹21 crore and ₹27 crore. Several other companies involved in the scheme, such as Adhar Project Management and Consultancy Pvt. and Reliance Big Entertainment Pvt., have also been fined ₹25 crore each by SEBI.
