CBI Books Reliance Capital, Ex-Chairman In Alleged LIC Investment Fraud

NEW DELHI, Sept 19: The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Limited, its former chairman and unidentified public servants in connection with an alleged investment fraud involving the Life Insurance Corporation of India (LIC).

The case was registered on the basis of a complaint filed by LIC, which alleged that between 2012 and 2018, it subscribed to five Non-Convertible Debentures issued by Reliance Capital for a total investment of Rs 3,900 crore.

According to the complaint, the funds were intended for general corporate purposes, meeting funding requirements and refinancing existing debt.

The CBI said LIC has alleged that the accused entered into a criminal conspiracy and committed offences including cheating, criminal breach of trust, diversion and misappropriation of funds.

The alleged acts resulted in a wrongful loss of around Rs 2,685 crore to LIC, with a corresponding wrongful gain to the accused and other beneficiaries, the agency said.

The CBI said its investigation will establish the role of all persons involved, examine the alleged conspiracy and trace the diversion of the invested funds.

The agency had earlier registered eight FIRs against companies including Reliance Communications, Reliance Capital, Reliance Home Finance and Reliance Telecom on complaints received from various public sector banks, the Employees’ Provident Fund Organisation and LIC.

The CBI has so far filed six charge sheets and arrested seven accused persons in these cases. The investigations are being monitored by the Supreme Court. (Agencies)