The Central Bureau of Investigation (CBI) has filed a case against Jai Anmol Anil Ambani, the son of industrialist Anil Ambani, and Reliance Home Finance Ltd. (RHFL) in connection with an alleged cheating case that led to a loss of Rs 228 crore for Union Bank of India.
According to officials,
The CBI’s action follows a complaint filed by the bank, formerly known as Andhra Bank, against RHFL, Jai Anmol Ambani, and Ravindra Sharad Sudhakar, both directors of the company.
The case revolves around the company obtaining credit limits amounting to Rs 450 crore from the bank’s SCF branch in Mumbai for business-related needs. The bank had set specific conditions for the loan, including maintaining financial discipline, timely repayment of the principal, servicing interest, and providing relevant documentation such as security positions and sale proceeds routing through the bank.
However, the company failed to meet these obligations, leading to the account being classified as a non-performing asset (NPA) on September 30, 2019.
A forensic audit conducted by Grant Thornton, covering the period from April 1, 2016, to June 30, 2019, revealed that the borrowed funds were misused and diverted for purposes other than those for which the finance was originally extended.
The bank has accused the individuals involved, including the promoters and directors of RHFL, of committing fraudulent misappropriation of funds, manipulating accounts, and breaching their fiduciary duties by diverting the loan amount for personal or unrelated uses, rather than for the intended business purposes. This alleged breach of trust and fund misappropriation has caused significant financial damage to the bank.
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