CBI Files Fraud Case Against Anil Ambani's Son: Rs 228 Crore Bank Fund Misappropriation Investigation

The Central Bureau of Investigation (CBI) has formally registered a case against Jai Anmol Anil Ambani, son of prominent industrialist Anil Ambani, in connection with an alleged bank fraud.

New Delhi authorities confirmed that the CBI has charged both Jai Anmol Anil Ambani and Reliance Home Finance Ltd. (RHFL) in a case involving alleged fraudulent activities against Union Bank of India that reportedly caused the public bank a substantial loss of Rs 228 crore, according to officials' statements on Tuesday.

The investigation was initiated following a formal complaint from the bank (previously known as Andhra Bank) against Reliance Home Finance Ltd., Jai Anmol Anil Ambani, and Ravindra Sharad Sudhakar, who both serve as directors at RHFL.

According to the complaint, the company had secured credit facilities amounting to Rs 450 crore from the bank's SCF branch located in Mumbai for business purposes.

The lending agreement stipulated specific conditions including maintaining financial discipline, ensuring timely repayment, servicing interest and other charges, submitting security position documentation and other required paperwork promptly, and channeling all sales proceeds through the bank account.

The company reportedly failed to meet its installment obligations to the bank, which subsequently led to the account being classified as a non-performing asset (NPA) on September 30, 2019.

A comprehensive forensic examination of the accounts was conducted by Grant Thornton (GT), covering a review period from April 1, 2016, to June 30, 2019. The investigation revealed that borrowed funds were allegedly mis-apportioned, which was considered as diversion of funds.

The bank alleged that "the accused persons in their capacity of erstwhile promoters/directors of the borrower Company committed fraudulent misappropriation of funds through manipulation of accounts and criminal breach of trust and diverted/siphoned off the funds for purposes other than those for which finance was extended."