Reliance Home Finance Scandal: Anil Ambani Under Fire for Loan Irregularities

The Securities and Exchange Board of India (SEBI) has identified significant irregularities in Reliance Home Finance Ltd (RHFL) loan approvals. The violations include deviations from credit policies. Chairman Anil Ambani is accused of overseeing these actions, raising concerns about corporate governance and transparency in loan disbursements.

The Securities and Exchange Board of India (SEBI) has flagged significant irregularities in Reliance Home Finance Ltd (RHFL) loan approvals. According to SEBI's ruling, the board had warned against reckless lending, yet such practices persisted. Anil Ambani, Chairman of the Anil Dhirubhai Ambani Group (ADAG), is accused of being the central figure in the fund diversion scheme.

SEBI's investigation uncovered multiple violations, including deviations from the company's credit policy, incomplete documentation, and loans to borrowers with negative net worth. PWC and Grant Thornton audits revealed that RHFL disbursed a strikingly high amount in General Purpose Corporate Loans, raising further red flags.

The findings highlight systemic issues within RHFL's management and underscore broader concerns about governance and transparency. SEBI's stringent critique follows detailed forensic audits by PWC and Grant Thornton, both of which found substantial evidence of malpractices and governance failures under Ambani's leadership.

(With inputs from agencies.)