
In a recent development concerning the penalty imposed on Reliance Group chairman Anil Ambani, the Securities Appellate Tribunal (SAT) on Friday conditionally stayed the Rs 25 crore fine levied by the Securities and Exchange Board of India (SEBI). The fine was originally imposed due to Ambani’s alleged involvement in diverting funds from Reliance Home Finance Ltd. (RHFL).
Although SAT granted a temporary stay on the penalty, Ambani has been directed to deposit 50% of the fine—equivalent to Rs 12.5 crore—within a four-week period as a condition for the stay. The order came after Ambani challenged SEBI’s ruling dated August 22.
SEBI’s Allegations
SEBI’s investigation revealed that RHFL had disbursed loans totaling Rs 9,295.25 crore to 45 General Purpose Working Capital Loan (GPCL) entities. Of this, Rs 4,944.34 crore was transferred to 13 specific borrowers, who in turn funneled Rs 4,013.43 crore to nine entities allegedly connected to Ambani’s Reliance ADA Group.
The market regulator further claimed that these transactions were part of a coordinated scheme to divert funds to financially unstable entities associated with the group, resulting in non-performing assets (NPAs) amounting to Rs 6,931.31 crore by September 2021.
SEBI’s Ruling: Ban and Fine
On August 22, SEBI not only imposed the Rs 25 crore fine on Ambani but also issued a five-year ban prohibiting him and 24 other individuals from accessing the securities market. Additionally, SEBI restricted Ambani from holding any position as a director or Key Managerial Personnel (KMP) in any listed company or SEBI-registered entity during this period.