MCA hands Anil Ambani’s Reliance Group case to Serious Fraud Investigation Office as probe deepens

The regulatory noose has tightened further around Anil Ambani’s Reliance Group, with the Ministry of Corporate Affairs (MCA) ordering a fresh probe into alleged fund diversion across multiple group companies. The investigation, initially handled by the MCA, has now been handed over to the Serious Fraud Investigation Office (SFIO) after preliminary findings suggested large-scale siphoning of funds and potential violations of the Companies Act.

According to sources, the probe will cover Reliance Infrastructure, Reliance Communications, Reliance Commercial Finance, and CLE Pvt Ltd, focusing on tracing the flow of money and identifying key decision-makers responsible for the alleged misconduct.

SFIO to probe large-scale fund movement

Officials said the SFIO will examine inter-company transactions and fund layering patterns across the group. “The preliminary report indicated diversion of funds through related entities and irregularities in financial disclosures,” a senior official familiar with the development said.

The move comes amid intensified action from enforcement agencies. Earlier this week, the Enforcement Directorate (ED) attached assets worth nearly ₹7,500 crore belonging to Reliance Group firms as part of its money laundering probe.

ED’s case: bank fraud and fund diversion

The ED’s case revolves around loans raised by Reliance Communications (RCOM) and its group companies between 2010 and 2012. According to the agency, the total dues amount to ₹40,185 crore, with five banks declaring the loan accounts fraudulent.

Investigators allege that the funds were diverted across group entities, routed through related parties, and in some cases, used to repay older borrowings instead of for business operations — a practice the ED described as “evergreening of debt.”

“From around 2010-12 onwards, RCOM and its group companies raised thousands of crores from Indian banks, of which ₹19,694 crore still remains outstanding. These assets turned NPA, with five banks having declared RCOM’s loan accounts as fraud,” the ED said in its statement.

The agency estimates that at least ₹13,600 crore was diverted through layered transactions, with some funds allegedly moved overseas. The investigation also names Reliance Home Finance, Reliance Commercial Finance, Reliance Infrastructure, and Reliance Power among the entities under scrutiny.

Multi-agency action and arrests

The CBI and ED had earlier conducted searches at Anil Ambani’s residence and offices of senior Reliance Group executives in August. A senior finance official linked to the group was later arrested in connection with the case.

Several Reliance Group companies have faced insolvency proceedings in recent years as debt pressures escalated. RCOM is already undergoing insolvency resolution, while other group entities face multiple recovery actions from lenders.