Anil Ambani challenges market regulator Sebi's Rs 625 crore penalty order

Sebi also added that it will determine the quantum of illegal gains made by the alleged fraudulent schemes, and further action may be initiated accordingly

Anil Ambani, chairman of the Reliance Group, has filed a plea in the Securities Appellate Tribunal (SAT) against an order by the Securities and Exchange Board of India (Sebi) on Reliance Home Finance (RHFL), imposing a total penalty of Rs 625 crore on 26 individuals.

The penalty imposed on Ambani was Rs 25 crore, while he was also debarred from the market for five years. In an order dated August 22, Sebi had alleged siphoning off of money from RHFL by doling out loans to borrowers linked with the promoters.

Sebi had also added that it will determine the quantum of illegal gains made by the alleged fraudulent schemes and further action may be initiated accordingly.

The tribunal may hear the matter on October 18 with other connected pleas.

Reliance Commercial Finance, a subsidiary of Reliance Capital, and RFHL former chief financial officer (CFO) Pinkesh Shah have also challenged the Sebi order in the tribunal in separate pleas.

Sebi had imposed a penalty of Rs 25 crore on Reliance Commercial Finance, while the penalty on Shah was Rs 21 crore. He was also restricted from accessing the market and taking any key role in other companies for five years.

The matter pertains to general purpose working capital loans (GPCL) disbursed by RHFL during 2018 and 2019. The regulator found several irregularities, violations and disclosures lapses at RHFL. The loans extended by RHFL had increased significantly to Rs 8,670 crore in 2018-19 from that of Rs 3,742 crore in 2017-18.

As per the Sebi order, the total outstanding amount which was pending to be received by RHFL stood at Rs 6,931 crore.