The Securities and Exchange Board of India (Sebi) has rejected the settlement application filed by Anil Ambani, Reliance Infrastructure, and some entities linked to the group and their directors in a case related to violation of its rules.
“The decision to not settle the matter was communicated to all the entities and individuals about 10 days ago,” said a person close to the development.
A spokesperson for the Anil Ambani group said: ”The allegations are categorically denied. The matters are sub judice, and the group will continue to defend its position as legally advised.”
An email sent to Sebi remained unanswered until the publication of this report.
Last year in September, Sebi issued show cause notices to Anil Ambani, Reliance Infrastructure and others alleging violation of its PFUTP (Prohibition of fraudulent and unfair trade practices) regulations.
“During 2018-19 and 2019-20, there was a provisioning in the financials of the company and there was a disclaimer by the auditor that the recoverability of these debts was doubtful,” said a person familiar with the matter. “Based on this disclaimer, Sebi initiated its investigation and found that money has been allegedly diverted from Reliance Infrastructure through sub-contracting and EPC (engineering, procurement and construction) arrangements to group companies.”
The settlement mechanism is an out-of-court agreement that allows those involved in regulatory breaches to resolve disputes without admitting or denying guilt, by paying a settlement amount.
While rejecting the settlement applications, Sebi has also mentioned simultaneous investigations by other enforcement agencies.
Multiple agencies, including the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), are investigating the Anil Dhirubhai Ambani (ADA) Group over alleged financial irregularities. While the CBI is probing multiple corruption cases, the ED is investigating allegations of money laundering.
So far, the ED has attached assets worth more than Rs 19,000 crore linked to the Reliance ADA Group and has filed multiple prosecution complaints in connection with the case.
The ED’s investigation, based on inputs from the National Housing Bank, Sebi, the National Financial Reporting Authority and Bank of Baroda, centres on a series of complex financial transactions involving public sector banks and private entities.
