Anil Ambani in trouble again. There are allegations of massive corruption in EPFO. The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Limited, its former chairman Anil Ambani and several unidentified public servants or others. The case involves a loss of Rs 1816.22 crore to EPFO. According to the CBI, the action was taken on the basis of a complaint by EPFO, which comes under the Ministry of Labour and Employment. The agency will now investigate the entire investment and related documents.
What is the full case?
According to the investigating agency, between 2013 and 2014, Reliance Capital issued secured non-convertible debentures. It is alleged that around Rs 25 billion of EPFO funds were invested in these debentures through four portfolio managers. Subsequently, the EPFO suffered a loss of Rs 1,816.22 crore, including principal and interest, due to this investment. This includes a principal loss of about Rs 1,007.55 crore and an interest liability of Rs 808.67 crore.
Under which section has the case been registered?
The CBI has registered a case under the provisions relating to criminal conspiracy, cheating, criminal breach of trust and corruption. The investigating agency will also investigate whether there were any violations of rules during the investment process and who played a role in it.
What did Anil Ambani say?
A statement issued by Anil Ambani denied all the allegations. His spokesperson said that he has done nothing wrong and will exercise all rights as per law. The statement also said that he was the non-executive chairman of the company till November 2021.
Why is this important for EPFO?
EPFO manages the provident funds of lakhs of employees in the country. Therefore, any alleged financial loss related to its investments is considered serious. Due to this, the CBI has been given the responsibility of investigating the case to determine if there were any irregularities or violations of rules in the investment process.
