+
Sebi fines Anmol Ambani Rs 10 million in Reliance Home Finance case
ECONOMY & POLICY

Sebi fines Anmol Ambani Rs 10 million in Reliance Home Finance case

The markets regulator, Sebi, imposed a penalty of Rs 10 million on Anmol Ambani, the son of industrialist Anil Ambani, for failing to exercise due diligence when approving general-purpose corporate loans related to Reliance Home Finance. In addition, a fine of Rs 1.5 million was levied on Krishnan Gopalakrishnan, the Chief Risk Officer of Reliance Housing Finance.

Both individuals have been instructed to pay the penalties within 45 days, as stated in Sebi's order.

This action follows a decision by Sebi in August to bar Anil Ambani and 24 others from the securities market for five years due to a case involving the diversion of funds from Reliance Home Finance. Anil Ambani was also fined Rs 250 million.

In its recent order, Sebi highlighted that Anmol Ambani, who was part of the board at Reliance Home Finance, had approved general-purpose corporate loans (GPCL), despite clear instructions from the company’s board not to proceed with any such approvals. Specifically, Anmol Ambani authorised a loan of Rs 200 million to Accura Productions on February 14, 2019, even though the board had directed the management not to issue any further GPCL loans in a meeting held on February 11, 2019.

Sebi noted that Anmol Ambani, in his capacity as a non-executive director, had deviated from the board’s directives and acted beyond his role. The regulator remarked that Anmol Ambani appeared to be motivated and acted contrary to the interests of the shareholders, failing to demonstrate due care and diligence while not upholding high ethical standards.

Furthermore, Sebi mentioned that Anmol Ambani was a member of the boards of Reliance Capital and Reliance Home Finance and served as a director for other Reliance ADAG group companies that received funds. He reportedly did not exercise reasonable due diligence regarding the overall GPCL lending and the subsequent lending by these GPCL entities to other Reliance ADAG group companies, including Reliance Capital.

Sebi also indicated that Gopalakrishnan had approved various GPCL loans and was cognizant of the significant deviations documented in the credit approval memos for the loans he had recommended while serving as the CRO of the company.

The markets regulator, Sebi, imposed a penalty of Rs 10 million on Anmol Ambani, the son of industrialist Anil Ambani, for failing to exercise due diligence when approving general-purpose corporate loans related to Reliance Home Finance. In addition, a fine of Rs 1.5 million was levied on Krishnan Gopalakrishnan, the Chief Risk Officer of Reliance Housing Finance. Both individuals have been instructed to pay the penalties within 45 days, as stated in Sebi's order. This action follows a decision by Sebi in August to bar Anil Ambani and 24 others from the securities market for five years due to a case involving the diversion of funds from Reliance Home Finance. Anil Ambani was also fined Rs 250 million. In its recent order, Sebi highlighted that Anmol Ambani, who was part of the board at Reliance Home Finance, had approved general-purpose corporate loans (GPCL), despite clear instructions from the company’s board not to proceed with any such approvals. Specifically, Anmol Ambani authorised a loan of Rs 200 million to Accura Productions on February 14, 2019, even though the board had directed the management not to issue any further GPCL loans in a meeting held on February 11, 2019. Sebi noted that Anmol Ambani, in his capacity as a non-executive director, had deviated from the board’s directives and acted beyond his role. The regulator remarked that Anmol Ambani appeared to be motivated and acted contrary to the interests of the shareholders, failing to demonstrate due care and diligence while not upholding high ethical standards. Furthermore, Sebi mentioned that Anmol Ambani was a member of the boards of Reliance Capital and Reliance Home Finance and served as a director for other Reliance ADAG group companies that received funds. He reportedly did not exercise reasonable due diligence regarding the overall GPCL lending and the subsequent lending by these GPCL entities to other Reliance ADAG group companies, including Reliance Capital. Sebi also indicated that Gopalakrishnan had approved various GPCL loans and was cognizant of the significant deviations documented in the credit approval memos for the loans he had recommended while serving as the CRO of the company.

Next Story
Real Estate

DLF Returns to Mumbai with Premium Andheri Residential Project

Delhi-NCR based real estate major DLF announced its return to the Mumbai market on 17 July with the launch of its premium residential project, The WestPark, in Andheri. The first phase includes 416 apartments spread across four towers, with two towers launched on the announcement day. The company plans to invest over Rs 8 billion in the project and expects a topline exceeding Rs 20 billion from Phase 1.“We have launched two towers and, given the strong response, plan to unveil the remaining two towers ahead of schedule, within the next few days,” said Aakash Ohri, Joint Managing Director o..

Next Story
Infrastructure Urban

APCRDA Advances Net Zero Goal with IGBC Training for Officials

In a significant stride towards Andhra Pradesh’s Net Zero target by 2040 and the Swarna Andhra 2047 vision, the Andhra Pradesh Capital Region Development Authority (APCRDA), in partnership with the Indian Green Building Council (IGBC), conducted a high-level capacity-building programme for senior officials in Vijayawada on Friday.Held at a city hotel, the session saw the participation of over 50 senior APCRDA officials, including the Engineer-in-Chief, Chief Engineer (H&B), Director (Planning), Director (Environment), and heads of key departments. The training centred on IGBC’s Green B..

Next Story
Infrastructure Energy

Assam Solar Project Halted as Waaree EPC Contract Is Cancelled

Following the Assam government’s withdrawal from its proposed solar project, the Engineering, Procurement, and Construction (EPC) contract awarded to Waaree Renewable has been suspended. Waaree Group’s EPC division informed the stock exchange of this development through a regulatory filing.The Assam solar project was suspended due to funding challenges, which rendered the initiative unviable for the state government. Waaree Renewable Transmission Limited (RTL) explained that the Government of Assam has withdrawn the project’s funding via the Asian Development Bank (ADB) loan. Consequentl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?