Anil Ambani Reviews SEBI's Five-Year Market Ban; To Take Legal Action

Anil Ambani had stepped down from the boards of Reliance Infrastructure and Reliance Power following SEBI's interim order dated February 11, 2022, related to the Reliance Home Finance probe

Anil Ambani's spokesperson said that he has been in full compliance with this interim order over the past two and a half years.

Source : PTI

Anil Ambani is reviewing the Securities and Exchange Board of India's (SEBI) recent order, which imposed a five-year ban from the capital markets and a Rs 25 crore fine on him, for his alleged involvement in a fund diversion case. A spokesperson confirmed that Ambani will take appropriate legal action based on further advice.

Anil Ambani had stepped down from the boards of Reliance Infrastructure Ltd and Reliance Power Ltd following SEBI’s interim order dated February 11, 2022, related to the Reliance Home Finance Ltd (RHFL) investigation. His spokesperson stated that Ambani has been in full compliance with this interim order over the past two and a half years.

The SEBI's final order, dated August 22, 2024, bans Ambani and 24 others from accessing the securities market for five years, accusing them of orchestrating a fraudulent scheme to siphon off funds from RHFL by issuing loans to financially unstable borrowers. The order also prohibits them from buying, selling, or dealing in securities.

In response, Reliance Infrastructure Ltd and Reliance Power Ltd both issued statements clarifying that the latest SEBI ruling does not affect their business operations. Reliance Infrastructure stated that Ambani had resigned from its board in 2022 and that it was not a party to the SEBI proceedings. Similarly, Reliance Power affirmed that Ambani's resignation from its board in 2022 shielded it from the impact of the August 22 order.

The case stems from a SEBI investigation into RHFL, where loans totaling over Rs 9,000 crore were allegedly disbursed to credit-unworthy borrowers, many of whom were linked to the promoters of the group. Alongside Ambani, the other 24 individuals banned by SEBI include senior executives from his Reliance Group and associated companies.

Ambani, once a leading industrialist, has faced significant setbacks in recent years, with major companies under his Reliance Group —such as Reliance Communications, Reliance Capital, and Reliance Infrastructure—entering bankruptcy due to heavy debt. This SEBI ruling adds further pressure on Ambani's already struggling business empire.