The Securities and Exchange Board of India (SEBI) on February 11, 2022 barred Reliance Home Finance Ltd, Anil Ambani and three other individuals from the securities market for siphoning off funds from the company.
The three other individuals who have been barred from it include Ravindra Sudhakar, Amit Bapna and Pinkesh R Shah.
The market regulator restrained individuals from associating themselves with any intermediary registered with Sebi or any other public company or acting directors of any public company that intends to raise money from the public till further orders.
Key Details
• Sebi's 100-page order was passed to a total of 28 individuals and entities.
• The key focus was to broadly look into how Reliance Home Finance dispersed loans during FY 2018-19 to several borrowing entities.
• The root of the order can be traced to multiple sources such as a letter of Price Waterhouse & Co addressed to RHFL intimating their resignation as the statutory auditor of the company.
• It is also a result of complaints received by Sebi alleging siphoning off/diversion of funds of RHFL by promoters and management of the company.
• There were also multiple Fraud Monitoring Returns (FMRs) from banks that alleged that the funds borrowed by RHFL from different lenders were partly used towards repayment of loans.
• The Sebi order also said that various connected parties and companies with weak financials were used as conduits to siphon off funds from RHFL to entities connected to the promoter company Reliance Capital,
• It was noted that Anil Ambani, who controls the company due to his position as a promoter and controlling shareholder, is seen to be exercising unfettered powers.
• The order also noted that the company's CFOs Pinkesh R Shah and Amit Bapna and the company’s Key Managerial Persons (KMPs) like Executive Director and CEO Ravindra Sudhakar are prima facie found hand in gloves with Ambani in siphoning off the borrowed funds of the company instead of bringing such misdeeds to the notice of the Board of Directors/Regulators.
• The amount of loans disbursed by Reliance Home Finance increased exponentially to around Rs 7,900 crore as on March 31, 2019 from around Rs 900 crore on March 31, 2018.
About Reliance Home Finance
Reliance Home Finance is one of India's leading financial services companies, owned by Anil Ambani.
It serves over 36,100 customers across 120 locations.
The services it offers include affordable home loan, loan against property, high value home loan, property services, construction financing and property valuation services.
Comments
All Comments (0)
Join the conversation