New Delhi: Anil Ambani, promotor of Reliance Home Finance and three other executives of the firm’s key managerial personnel in 2018-19 have been barred by the Securities and Exchange Board of India (SEBI) from buying, selling or dealing in securities.
The action came after Sebi received complaints alleging siphoning off or diversion of funds of RHFL by the promoters and management, and after the company’s statutory auditor PwC resigned in June 2019, according to news reports.
In a 100 page order, the SEBI also restrained the concerned individuals from “associating themselves with any intermediary registered with Sebi, any listed public company or acting directors/ promoters of any public company which intends to raise money from the public’’, till further orders.
The order, pertaining to alleged siphoning off of funds from the company, has been passed against a total of 28 individuals and entities (noticees).
The order noted that the company’s Key Managerial Persons (KMPs) like Executive Director and CEO Ravindra Sudhalkar and the CFOs — Amit Bapna and Pinkesh R Shah — ”instead of bringing such misdeeds to the notice of the Board of Directors/Regulators, are prima facie found to be hand in gloves with Ambani, in siphoning off the borrowed funds of the company to other financially weak promoter group companies which is evident at different stages of approval of those General Purpose Corporate Loans (GPCL) transactions”.
The amount of loans disbursed by RHFL under General Purpose Corporate Loans (GPC loans) have increased exponentially from around Rs 900 crore as on March 31, 2018 to around Rs 7,900 crore as on March 31, 2019, the order said.
The noticees include Adhar Project Management and Consultancy Private Ltd, Indian Agri Services Pvt Ltd, Phi Management Solutions Pvt Ltd, Arion Movie Productions Pvt Ltd, Citi Securities and Financial Services Pvt Ltd, Deep Industrial Finance Ltd, Azalia Distribution Pvt Ltd and Vinayak Ventures Pvt Ltd.
Gamesa Investment Management Pvt Ltd, Medybiz Pvt Ltd, Hirma Power Ltd, Tulip Advisors Pvt Ltd, Mohanbir Hi-Tech Build Pvt Ltd, Netizen Engineering Pvt Ltd and Crest Logistics and Engineers Pvt Ltd (now known as Cle Pvt Ltd) are among the noticees.
Other noticees are Reliance Unicorn Enterprises Pvt Ltd, Reliance Exchange next Ltd, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, Reliance Broadcast Network Ltd, Reliance Big Entertainment Pvt Ltd and Reliance Capital Ltd.
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