CBI files fresh case alleging ₹2,684.57 cr loss by Reliance Capital

The Central Bureau of Investigation (CBI) has lodged a new criminal case against Reliance Capital and its chairman Anil Ambani, alleging that the company caused a loss of ₹2,684.57 crore to the Life Insurance Corporation (LIC), The Hindu reported. The filing cites violations of several sections of the Indian Penal Code as well as the Prevention of Money Laundering Act, and it names a dozen individuals, including senior Reliance Capital executives, as co‑accused.

According to the CBI’s statement, the investigation began after LIC filed a formal complaint in early 2024, claiming that the financial group had misrepresented its asset quality and diverted funds to entities linked to the Ambani family. The agency says the alleged misconduct involved the issuance of unsecured loans, manipulation of financial statements, and the use of shell companies to conceal the flow of money. The case was registered in a Mumbai court, and the accused have been issued summons for further questioning.

Reliance Capital’s troubles are not new. The conglomerate entered a prolonged insolvency process in 2020 after defaulting on debt repayments, prompting a restructuring plan overseen by the National Company Law Tribunal. Earlier, the CBI had opened a separate probe into the firm’s alleged money‑laundering activities linked to the same period, but that investigation stalled due to insufficient evidence. The fresh case revives scrutiny at a time when the group is attempting to revive its capital markets presence through a series of asset sales and a proposed merger with a private equity partner.

LIC, India's largest insurer with a portfolio exceeding ₹30 trillion, has repeatedly warned that large‑scale fraud in the corporate sector can erode policyholder confidence and strain its investment returns. A loss of the magnitude reported would represent roughly 9 % of LIC’s total assets, underscoring why the insurer pursued legal recourse. The episode also highlights the broader regulatory focus on corporate governance failures that have plagued several Indian conglomerates in recent years.

Legal experts note that if the CBI secures a conviction, the accused could face imprisonment of up to ten years and hefty fines, while the assets in question may be seized to partially reimburse LIC. The case is expected to proceed through several stages of evidence collection and court hearings, with the outcome likely to influence ongoing reforms aimed at tightening oversight of large financial institutions in India.