Sebi orders five entities to pay Rs 1.3 billion in Reliance case

06 Nov 2024 CW Team

The entities issued notices include Netizen Engineering Pvt Ltd, Gamesa Investment Management Pvt Ltd, Vinayak Ventures Pvt Ltd, Deep Industrial Finance Ltd, and Citi Securities and Financial Services Pvt Ltd. These demand notices follow the entities' failure to pay fines imposed by Sebi in August. Each entity is now ordered to pay Rs 260 million, covering interest and recovery costs, within the stipulated timeframe.

In case of non-payment, Sebi intends to recover the amount by attaching and liquidating the entities' movable and immovable assets and freezing their bank accounts.

The issue dates back to August when Sebi barred industrialist Anil Ambani and 24 other individuals, including former Reliance Home Finance (RHFL) executives, from the securities market for five years due to their roles in misappropriating funds. Ambani received a Rs 250 million penalty and was prohibited from holding any position in listed companies or entities registered with Sebi for five years. Additionally, RHFL was barred from the securities market for six months, facing a fine of Rs 600,000.

In a 222-page order, Sebi revealed that Ambani, aided by RHFL’s senior management, devised a scheme to misappropriate funds, presenting them as loans to entities affiliated with him. Despite RHFL’s board directives to curb such practices, the management continued these unauthorised transactions, reflecting a failure in governance influenced by Ambani.

The order also identifies other involved entities as recipients or facilitators of the diverted funds. Alongside Ambani, key RHFL officials—Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah—were penalized, with fines of Rs 270 million, Rs 260 million, and Rs 210 million, respectively.

Additional penalties of Rs 250 million were imposed on related entities, including Reliance Unicorn Enterprises, Reliance Exchange Next, and Reliance Commercial Finance. Last week, Sebi issued demand notices to six entities, including RHFL's promoter, for a further Rs 154.50 crore in relation to the fund diversion case. (ET)

"Join industry leaders at RAHSTA Expo, India's premier platform for roads, highways and traffic infrastructure. Register now to explore innovations, network with experts and shape the future of mobility."

The Securities and Exchange Board of India (Sebi) has directed five entities, including Netizen Engineering and Citi Securities and Financial Services, to pay Rs 1.3 billion for their involvement in diverting funds from Reliance Home Finance Ltd. Sebi has warned that if the entities do not comply within 15 days, it will take action to attach their assets and bank accounts. The entities issued notices include Netizen Engineering Pvt Ltd, Gamesa Investment Management Pvt Ltd, Vinayak Ventures Pvt Ltd, Deep Industrial Finance Ltd, and Citi Securities and Financial Services Pvt Ltd. These demand notices follow the entities' failure to pay fines imposed by Sebi in August. Each entity is now ordered to pay Rs 260 million, covering interest and recovery costs, within the stipulated timeframe. In case of non-payment, Sebi intends to recover the amount by attaching and liquidating the entities' movable and immovable assets and freezing their bank accounts. The issue dates back to August when Sebi barred industrialist Anil Ambani and 24 other individuals, including former Reliance Home Finance (RHFL) executives, from the securities market for five years due to their roles in misappropriating funds. Ambani received a Rs 250 million penalty and was prohibited from holding any position in listed companies or entities registered with Sebi for five years. Additionally, RHFL was barred from the securities market for six months, facing a fine of Rs 600,000. In a 222-page order, Sebi revealed that Ambani, aided by RHFL’s senior management, devised a scheme to misappropriate funds, presenting them as loans to entities affiliated with him. Despite RHFL’s board directives to curb such practices, the management continued these unauthorised transactions, reflecting a failure in governance influenced by Ambani. The order also identifies other involved entities as recipients or facilitators of the diverted funds. Alongside Ambani, key RHFL officials—Amit Bapna, Ravindra Sudhalkar, and Pinkesh R Shah—were penalized, with fines of Rs 270 million, Rs 260 million, and Rs 210 million, respectively. Additional penalties of Rs 250 million were imposed on related entities, including Reliance Unicorn Enterprises, Reliance Exchange Next, and Reliance Commercial Finance. Last week, Sebi issued demand notices to six entities, including RHFL's promoter, for a further Rs 154.50 crore in relation to the fund diversion case. (ET)

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..