No adverse findings in forensic report, say Anil Ambani's companies

Reliance Commercial Finance said the forensic report has confirmed the potential group entities' exposure through several intermediate unlisted entities at Rs 4,427.74 crore

Reliance Commercial Finance and Reliance Housing Finance have said forensic auditor, Grant Thornton, has not recorded any adverse findings on 11 parameters, including diversion and siphoning off of funds, and embezzlement. Both entities are part of Anil Ambani-controlled Reliance Capital. 

As part of the debt resolution process, the company’s lenders appointed Grant Thornton for the audit in August 2019, as required by the Reserve Bank of India (RBI) guidelines.

Reliance Commercial Finance said in a statement that the forensic report has confirmed the potential group entities’ exposure through several intermediate unlisted entities at Rs 4,427.74 crore (including interest). This, the company had voluntarily and publicly disclosed, before commencement of the forensic audit.

The other findings in the forensic audit report are limited to the following issues: Alleged regulatory anomalies regarding group exposure and alleged deviation from certain policies and procedures. The regulator, RBI, had already taken note these. The RBI had directed the company not to access ‘public funds’ and not to take more exposure with immediate effect until further notice.

Meanwhile, Reliance Housing Finance said the National Housing Bank (NHB), has taken actions such as imposition of penalty and directions regarding the alleged regulatory anomalies, including concentration of credit, related party transactions. NHB also directed it to increase the housing loan disbursements and reduce corporate exposure.

After completion of the forensic audit, Reliance Home has requested bankers to proceed on a fast-track basis with the debt resolution plan in the overall interest of all lenders, including retail debentures holders and shareholders.