In a latest development to the fine imposed on the Reliance group chairman, Anil Ambani, the Securities Appellate Tribunal (SAT) on Friday conditionally stayed the hefty Rs 25 crore fine imposed on Anil Ambani by the Securities and Exchange Board of India (SEBI).
The penalty was imposed by the market regulator SEBI against Ambani for his alleged involvement in the diversion of funds from Reliance Home Finance Ltd. (RHFL).
Although the stay was granted to him by SAT but the tribunal also directed Ambani to deposit 50 per cent of the penalty, amounting to Rs 12.5 crore, within four weeks as a precondition.
This stay was ordered after Ambani filed an appeal challenging SEBI's August 22 ruling.
SEBI’s Allegations
The controversy centers around SEBI’s findings that RHFL had disbursed loans amounting to Rs 9,295.25 crore to 45 General Purpose Working Capital Loans (GPCL) entities. Out of this, a large portion that is, Rs 4,944.34 crore was funnelled to 13 specific borrowers who then passed on Rs 4,013.43 crore to nine entities linked to the promoter group, allegedly connected to Anil Ambani.
The market regulator investigation also added that these transactions were part of a well-coordinated effort to divert funds from RHFL to financially weak entities associated with the Reliance ADA Group. Furthermore, this led to non-performing assets (NPAs) of Rs 6,931.31 crore by September 2021.
A 5-Year Market Ban and Penalties
SEBI’s August 22 ruling not only imposed a Rs 25 crore fine on Anil Ambani but also barred him and 24 other individuals from accessing the securities market for five years. Additionally, SEBI restrained Ambani from serving as a director or Key Managerial Personnel (KMP) in any listed company or any entity registered with SEBI during this period.
