Mumbai: Businessman Anil Ambani is currently assessing the Securities and Exchange Board of India (SEBI) order that imposes a five-year ban on him from participating in the capital markets and includes a substantial fine. This decision follows allegations of fund diversion involving Reliance Home Finance Ltd.

A spokesperson for Ambani confirmed on Sunday that he is reviewing the SEBI final order dated August 22, 2024, and will proceed according to legal advice. Ambani had previously resigned from the boards of Reliance Infrastructure Ltd and Reliance Power Ltd following an interim SEBI order on February 11, 2022, related to the same case.

The August 22 order includes a fine of Rs 25 crore against Ambani, accusing him of orchestrating a scheme to misappropriate funds from Reliance Home Finance, a subsidiary of his conglomerate. This ban restricts Ambani and 24 other individuals from engaging in any securities market activities, including buying or selling securities.

In response, Reliance Infrastructure Ltd issued a statement clarifying that it was not involved in the SEBI proceedings and that the latest order does not impact its operations. The company emphasized that Ambani's resignation from its board in 2022 was in compliance with SEBI's interim order.

Similarly, Reliance Power, another company within Ambani's group, stated that the recent SEBI order does not affect it, given Ambani’s earlier resignation from its board.

SEBI’s August 22 order described a fraudulent scheme where funds were diverted from Reliance Home Finance by providing loans to financially unqualified borrowers, many of whom were linked to company promoters.

The case highlights ongoing financial difficulties for Ambani's Reliance Group, which has seen significant troubles with major companies like Reliance Communications, Reliance Capital, and Reliance Infrastructure facing bankruptcy due to unpaid debts.

SEBI’s charges suggest that over Rs 9,000 crore worth of loans were given to borrowers with no apparent ability to repay, intensifying scrutiny on Ambani and his associates.

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