New Delhi, April 1 The CBI registered a new case against industrialist Anil Ambani and Reliance Communications Ltd on Wednesday, alleging that they caused a loss of ₹3,750 crore to the Life Insurance Corporation (LIC) of India, officials said.
The CBI has filed the case on charges of conspiracy, fraud, and misappropriation, as well as under the provisions of the Prevention of Corruption Act, based on a complaint from LIC, making it the fourth case against the company and Anil Ambani, they said.
The agency alleges that LIC was fraudulently induced to subscribe to Non-Convertible Debentures (NCDs) worth ₹4,500 crore between 2009 and 2012, based on false representations made by Reliance Communications Ltd and its management regarding the company's financial health and the security and asset cover offered to LIC while subscribing to the NCDs.
The insurer suffered a loss of over ₹3,750 crore and ordered a forensic audit against the company.
The forensic audit report, dated October 15, 2020, conducted by BDO India LLP, found that RCOM and its management had misused funds raised from banks and financial institutions, routed funds through subsidiaries, misused sale invoice financing, discounted fictitious bills, systematically siphoned funds through inter-company deposits/shell-related entities, created and written off fictitious debtors and receivables, and grossly overstated security.
The report stated that there was a mismatch between the assets and liabilities.
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