Anil Ambani to Challenge Sebi’s 5-Year Ban and ₹25 Crore Fine: What’s Next for Reliance Home Finance?

Businessman Anil Ambani is currently reviewing a recent order from the Securities and Exchange Board of India (Sebi) that imposes a fine and bans him from the capital markets for five years. This order is related to an alleged case of fund diversion involving Reliance Home Finance Ltd.

Ambani’s spokesperson said that he is examining the Sebi order and will decide on the next steps based on legal advice. The order from August 22, 2024, also fined him ₹25 crore. Sebi accused him of orchestrating a scheme to divert funds from Reliance Home Finance, a company under his Reliance Group.

According to the spokesperson, Ambani has been complying with an earlier interim order from February 11, 2022, which led him to resign from the boards of Reliance Infrastructure Ltd and Reliance Power Ltd. Both companies have stated that the recent Sebi order does not affect them since Ambani had already stepped down from their boards.

Sebi’s order states that a fraudulent scheme was used to divert funds from Reliance Home Finance to unqualified borrowers, many of whom were linked to the promoters.

Anil Ambani’s Reliance Group, which was divided from Reliance Industries Ltd in 2006, has faced significant financial trouble recently, with three major companies going bankrupt due to unpaid debts. Sebi’s charges involve more than ₹9,000 crore in loans given to borrowers who couldn’t repay them.

The ban also affects 24 other individuals connected to Ambani’s group.