Anil Ambani faces fresh CBI case over Rs.3,750 crore LIC loss
The Central Bureau of Investigation (CBI) on Wednesday registered a fresh case against debt-sunken industrialist Anil Ambani and Reliance Communications Ltd for allegedly causing a loss of Rs.3,750 crore to Life Insurance Corporation (LIC) of India. The CBI has filed the case for the alleged offences of conspiracy, cheating, and misappropriation, and under the provisions of the Prevention of Corruption Act on a complaint from the LIC, making it the fourth case against the company and Anil Ambani, said officials.
TCBI officials said that LIC was fraudulently induced to subscribe to Non Convertible Debentures (NCDs) worth Rs.4500 crore between 2009 and 2012 on the basis of false representations made by Reliance Communications Ltd. and its management regarding the financial health of the company, and security and asset cover offered to LIC while subscribing to the NCDs.
LIC suffered a loss of over Rs.3,750 crore and ordered a forensic audit against the company. The forensic audit report dated October 15, 2020, conducted by BDO India LLP, reported that RCOM and its management had resorted to misutilisation of funds raised from banks and financial institutions, routing of funds through subsidiaries, misuse of sale invoice financing, discounting of fictitious bills, systematic siphoning of funds through inter-company deposits/ shell related entities, creating and write-off of fictitious debtors and receivables and gross overstatement of security. It said there was a mismatch between the charges and the assets.
Anil Ambani and his companies owe more than Rs.71,000 crore to 14 banks. He is also facing bank fraud cases from Chinese banks.
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