Key points
· CBI alleges misuse and diversion of bank funds
· ₹30 billion loss reported by State Bank of India
· Ambani denies charges and promises to defend himself
· Recent ED raids also target Reliance Group in related probe
ISLAMABAD: India’s federal investigating agency said on Saturday it had opened a criminal case against industrialist Anil Ambani and his company Reliance Communications Ltd, following a complaint by India’s largest bank about alleged fraud, according to Reuters.
State Bank of India, alleged that Anil Ambani, the younger brother of billionaire Mukesh Ambani, and Reliance Communications defrauded the bank, causing 30 billion Indian rupees ($344 million) of losses.
India’s Central Bureau of Investigation conducted search operations in Mumbai at Anil Ambani’s house and the offices of the now insolvent Reliance Communications, the agency said in a press statement.
Ambani denies charges
A spokesperson for Ambani told Reuters that the searches at his residence concluded early this afternoon. “Mr. Ambani strongly denies all allegations and charges, and will duly defend himself,” the spokesperson said.
The agency said Anil Ambani and his company misused and diverted bank funds for purposes other than what was agreed.
According to Reuters, an email query to SBI was not answered immediately.
35 locations searched
Last month, India’s Enforcement Directorate also searched 35 locations linked to Reliance Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source told Reuters.
Reliance Group did not respond to a request for comment at the time, but a source at the group denied the allegations, according to Reuters.
Who is Anil Ambani?
According to Reliance Group’s website, Anil Dhirubhai Ambani, born on June 4, 1959, in Mumbai, is the Chairman of the Reliance Group and son of Dhirubhai Ambani. A Wharton MBA and K.C. College graduate, he is married to former actress Tina Munim and has two sons. He founded the Reliance Group in 2006, which now spans key sectors like power, infrastructure, finance, and media, with assets of ₹3,16,000 crore (or $36.19 billion USD) and nearly eight million shareholders.
