SEBI Rejects Anil Ambani's Settlement Plea in Fund Diversion Case

Mumbai: SEBI has rejected settlement applications filed by businessman Anil Ambani and Reliance Infrastructure in a case involving the alleged diversion of approximately $700 million in company funds.

The settlement applications, rejected last week, relate to allegations that funds were routed through fraudulent means to entities linked to Anil Ambani, the controlling shareholder. SEBI cited parallel investigations being conducted by other probe agencies as a reason for its decision.

This marks the second time SEBI has rejected a settlement application from Anil Ambani — it had earlier turned down a similar plea related to allegations concerning investments in Yes Bank. SEBI's assessment is that company funds were diverted for personal gain rather than to protect the corporate interests of public shareholders.

SEBI alleged that Reliance Infrastructure diverted Rs 17,670 crore to an engineering contracting firm, CLE Private Limited, which had been described as an independent entity. Of this amount, at least Rs 11,200 crore was invested by CLE, up to 2024, in companies linked to Ambani's Reliance ADA Group. On examining the practical realities, SEBI found that CLE was not truly an independent company but functioned more like a subsidiary indirectly controlled by Anil Ambani and certain other officials.

However, a spokesperson for the Anil Ambani Group fully denied the allegations, stating in an email that the matter is currently before the courts and that the group's position would be conveyed based on legal advice. SEBI, meanwhile, declined to comment on the matter.