Anil Ambani Faces SEBI Demand to Pay ₹154.5 Crore Over Reliance Home Finance Mismanagement - Read Now
SEBI demands ₹154.5 crore from Anil Ambani’s companies, including Reliance Home Finance, over alleged fund mismanagement. SEBI's order warns of asset seizure if payment is not made within 15 days, highlighting regulatory actions on corporate governance.
The troubles of Anil Ambani before the regulatory authorities are mounting further, as market regulator SEBI issued a demand notice against his company Reliance Home Finance and six other related entities for ₹154.5 crore. According to SEBI's order, it alleged fund mismanagement and financial irregularities in Reliance Home Finance, and it has given consequential directions if the payment is not completed within 15 days.
SEBI has claimed financial mismanagement by Anil Ambani's main business promoted unit, Reliance Home Finance, for ₹154.5 crores and issued a notice asking for the amount to be paid. The fresh notice from SEBI came a day after a barrage of penalties and restrictions issued on Ambani's finance houses in the last twelve months. An initial investigation already found some misappropriation by Reliance Home Finance, which led to the five-year ban that was imposed on Ambani and several former executives holding any significant position in the listed companies.
This sum of ₹154.5 crore is to be split between the companies targeted which are liable to pay the amount of ₹25.75 crore each of them. These were Crest Logistics, Reliance Unicorn Enterprises, Reliance Exchange Next, Reliance Commercial Finance, Reliance Business Broadcast News Holdings and Reliance Cleangen. In case they fail to meet this at the same time then all movable and immovable properties will be confiscated along with their bank account freezes as well.
This demand notice comes as a result of SEBI's findings this year where it had established that funds were siphoned off by Reliance Home Finance under the guidance of Anil Ambani. It was stated in the final report that Reliance Home Finance conducted loans with groups of entities that are in association with Ambani as legitimate corporate transactions. As the Reliance Home Finance board had issued strict internal directives against such practices, the SEBI investigation disclosed that these directives were oftentimes disregarded.
In a 222-page order, SEBI elaborately mentioned several irregularities indicating that the senior employees from Reliance Home Finance "may have actively assisted themselves in the diversion of money to the Ambani related entities". SEBI sanctioned ₹25 crore as an additional penalty on Ambani and restricted him from getting into any directorial/managerial position in companies listed on the stock markets for five years. Not only that, Reliance Home Finance was banned provisionally for six months but also got an additional liability of ₹6 lakh against it.
It marks a landmark moment for SEBI as it continues to enforce stringent corporate governance standards across India's financial markets. The crackdown on Reliance Home Finance sends out a clear message that SEBI is committed to addressing corporate mismanagement and protecting investor interests.
The demand notice that SEBI has presented before Reliance Home Finance and the other relevant parties will determine the course of regulation in India's financial markets. It would emphasize the need for transparency in corporate governance practices.
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