look news india
Market regulator SEBI has banned Anil Ambani's companies from the stock market for 5 years in the fund embezzlement case. Ambani has also been fined Rs 25 crore. He has also been barred from becoming a director in any listed company.
Apart from them, 24 other entities including former CEOs of Reliance Home Finance (RHFL) have been banned and various penalties have been imposed. Reliance Home Finance has been banned for 6 months and fined Rs 6 lakh.
According to the 222-page final order issued by SEBI, the investigation revealed that Anil Ambani embezzled the money with the help of RHFL officials. He used the money himself, but pretended that the money was given as a loan.
4 big things related to SEBI's order
- The Board of Directors had directed to stop such loans and to conduct regular review of corporate loans, but the company's management ignored these orders.
- SEBI said that under these circumstances, RHFL should not be held liable on par with the persons involved in the fraud. Other organisations assisted in the siphoning off of funds.
- Anil Ambani has been fined Rs 25 crore, Amit Bapna Rs 27 crore, Ravindra Sudhakar Rs 26 crore and Pinkesh R Shah Rs 21 crore.
- Reliance Unicorn Enterprises, Reliance Exchange Next and other companies have been fined Rs 25 crore each for their involvement in misappropriation of funds.
- Reliance Infra shares fell nearly 14%, Power fell 5%
- After SEBI's ban, Anil Ambani's companies Reliance Infra, Reliance Home Finance and Reliance Power are falling. Reliance Infra fell the most by 14%, Reliance Home Finance by 5.12% and Reliance Power by 5.01%.
- Anil joined Reliance in 1983; the business collapsed after the split.
- Mukesh Ambani joined Reliance in 1981 and Anil Ambani in 1983. Dhirubhai Ambani died in July 2002. He did not leave a written will. Mukesh Ambani became the chairman of Reliance Group and Anil Ambani became the managing director.
- The feud between brothers Mukesh Ambani and Anil Ambani first came to light in November 2004. Dhirubhai Ambani's wife Kokilaben was upset with the ongoing feud in the family, which led to the division of the business.
- The split happened in June 2005, but it took until 2006 to decide which brother would get which company. The then chairman of ICICI Bank VK Kamath also had to intervene in this split.
- After the demerger, Mukesh Ambani got companies like petrochemicals business, Reliance Industries, Indian Petroleum Chemicals Corp Ltd, Reliance Petroleum, Reliance Industrial Infrastructure Ltd.
- Younger brother Anil is the owner of companies like RCom, Reliance Capital, Reliance Energy, Reliance Natural Resources. Since then Mukesh Ambani has been touching new heights, but Anil's mistakes sank his business.
