look news india
Ahmedabad: Capital market regulator SEBI has banned businessman Anil Ambani from the securities market for five years. SEBI also imposed a ban on 24 others including Ambani and former chief executive officers of Reliance Home Finance. Apart from this, SEBI ordered Anil Ambani to have a capital of Rs. 25 crore and not to hold the position of director or 'key managerial employee' in any listed company or any intermediary registered with SEBI for 5 years.
Apart from this, 24 other units involved in this scam were also given Rs. 21 crore to Rs. 25 crore fines have been imposed.
These officials including Anil Ambani have taken this action in the case of misappropriation and fraud of money of Reliance Home Finance Company. Apart from this, SEBI has also banned Reliance Home Finance from trading in the securities market for 6 months and imposed a fine of Rs 100 crore. A fine of Rs 6 lakh has also been imposed.
In its 222-page final order, SEBI said that Anil Ambani had planned to siphon off funds of Reliance Home Finance to his associates in the form of loans with the help of key management personnel of Reliance Home Finance. Although the board of Reliance Home Finance had issued strict directions to curb such lending practices and conducted regular reviews of corporate loans, the company's management ignored these orders.
The remaining 24 entities banned by SEBI include former RHFL chief executives Amit Bapna, Ravindra Sudhalkar and Pinkesh R. Shah. SEBI has also imposed a fine on them for their role in the case. SEBI has imposed a fine of Rs. 27 crore on Bapna, Rs. 26 crore on Sudhalkar and Rs. 21 crore on Shah. Apart from this, Reliance Unicorn Enterprise, Reliance Exchange Next LT, Reliance Commercial Finance Limited, Reliance Klingon Limited, Reliance Business Broadcast News Holdings Limited and Reliance Big Entertainment Private Limited have imposed a fine of Rs 25 crore each on other organizations.
Ambani used his position as chairman of AD Group and his substantial indirect stake in the holding company of Reliance Home Finance to perpetrate the fraud. SEBI in its order cited the negligent attitude of the company's management and promoter. They sanctioned loans worth crores of rupees to companies that had neither assets nor cash flow, net worth or revenue. This misconduct shows that there was an ulterior motive behind the transfer of loan amounts.
SEBI said that almost all the borrowers were closely linked to the promoters of RHFL. Ultimately most of these borrowers failed to repay the loans, leading to Reliance Home Finance defaulting on its loans. The company was eventually resolved under the RBI framework
