Reliance Comm, Power, Infra hit 5% lower circuit as CBI books Anil Ambani

Anil Ambani's firm's stocks plunged as the CBI filed a case and carried out searches after a fraud complaint from the State Bank of India

Shares of Anil Ambani-led firms tumbled on Monday after the Central Bureau of Investigation (CBI) booked the promoter in a bank fraud case linked to losses of over ₹2,000 crore at State Bank of India (SBI).

 

Reliance Power shares and Reliance Infrastructure hit their 5 per cent lower circuit while Reliance Communications fell 5.5 per cent on Monday's intraday session. As of 9:50 AM, shares of Reliance Power and Reliance Infra were down 5 per cent each. Reliance Home Finance was down 5.12 per cent, compared to a 0.33 per cent advance in the Nifty50 index.  

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CBI files criminal case against Anil Ambani

The stocks took a toll after the CBI filed a case and carried out searches at the residence of Ambani and premises linked to Reliance Communications in connection with the case. 

 

The CBI took the action based on a complaint from SBI, which had approached the agency after the entities were classified as fraudulent on June 13. The credit exposure of SBI in RCom includes, fund-based principal outstanding amount of ₹2,227.64 crore along with the accrued interest and expenses with effect from August 26, 2016, and a non-fund-based Bank Guarantee of ₹786.52 crore. 

 

The SBI had classified the account and promoter Anil D Ambani as 'fraud' on November 10, 2020 and filed a complaint with the CBI on January 5, 2021.

 

Anil Ambani, however, strongly denied all allegations and charges, and said he will duly defend himself, according to a spokesperson. The statement said that SBI has already withdrawn proceedings against five other Non-Executive Directors and "Ambani has been selectively singled out." 

ED raids on Anil Ambani Group firms

Earlier this month, the Enforcement Directorate (ED) summoned Anil Ambani to appear for questioning on August 5 in connection with a money laundering case. This is regarding an alleged loan fraud and diversion of over ₹10,000 crore by his group companies, with the Reliance Group sources calling the figure "sensationalised" and not rooted in fact.

 

"Reliance Infra had an exposure of ₹6,500 crore. The allegation that the diverted amount is ₹10,000 crore only serves to sensationalise the magnitude and is not based on facts," the company said. 

RCom under insolvency process

At present, RCom is being managed under the supervision of a committee of creditors, led by SBI and overseen by a resolution professional. The resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai, on March 6, 2020.

 

SBI has also initiated a Personal Insolvency Resolution Process under IBC against Anil D Ambani, and it is being heard by NCLT, Mumbai, he had said.