Anil Ambani use has position as ‘chair person of the ADA group’ and has significant indirect shareholding in the holding company of RHFL to orchestrate the fraud.
Delhi : markets regulator SEBI has been industrialist Anil Ambani, 24 other entities, including former key officials of Reliance home finance from the security market for 5 years for diversion of fund from the company.
SEBI has imposes a penalty of 25 crore on Anil Ambani and restrained him from being associated with the security market including as a director or key manager real personal “KMP” is any listed company, or any intermediary registered with the market regulator, for period of 5 years.
Also, the regulator barred Reliance home finance from the security’s market for 6 months and slapped a fine of “6 lakh” on it.
In it is 222 — page final order se bhi founded Anil Ambani with the help of RHFL’s managerial personal had orchestrated fraudulent scheme to siphone–of funds from RHFL by disguising them as loans to entities linked to him.
Although the board of director of RHFL had issue strong directives to stop such lending practices and reviewed with corporate loans regularly, the company’s management ignored these orders.
This suggests a significant failure of governance, driven by certain key managerial personnel under the influence of Anil Ambani.
Given these circumstances, the company RHFL itself should not be a held equally responsible as the individual involved in the fraud .
Further, the remaining entities have played the role of being either recipient of illegally obtained loans or conduits to enable illegal diversion of monies From RHFL , the regulator noted .
SEBI side it finding have established the “existence of a fraudulent scheme, orchestrated by notice No.2 (Anil Ambani) and administrate by the KMPs of RHFL to siphon of funds from the public listed company (RHFL) by structuring them as loans to credit unworthy conduits borrowers all of and it turn, to onward borrowers all of whom have been found to be ‘promoter’ Linked entities it is associated linked with notice 2 “Anil Ambani”
SEBI, in it is order on Thursday noted the seven year approach of the companies management and promoter in approving loans worth hundred of crores to company that had little to no assets, cash flow, net worth, or revenue.
This suggest a Sinister objective behind the ‘loans’ the situation becomes even more suspicious when considering that many of these borrowers were closely linked to the promoters of RHFL .
Eventually most of this borrowers behind failed to repay their loans, causing RHFL to default on it is own debt obligations. this led to the companies resolution under the RBI framework ” leaving it is public shareholders in a difficult position.
Sebi, in its order on Thursday, noted the cavalier approach of the companies management and promoter’s in approving loans worth hundred of crores to company that had little to no assets , cash flow , net worth, or revenue.