CBI books Reliance ADAG company, directors in ₹1,816 crore EPFO loss case

MUMBAI: The Central Bureau of Investigation (CBI) registered a First Information Report (FIR) against Reliance Capital Ltd (RCL), its directors, key managerial personnel and others for allegedly causing a wrongful loss of ₹1,816

MUMBAI: The Central Bureau of Investigation (CBI) registered a First Information Report (FIR) against Reliance Capital Ltd (RCL), its directors, key managerial personnel and others for allegedly causing a wrongful loss of ₹1,816.22 crore to the Employees’ Provident Fund Organisation (EPFO).

The FIR follows a complaint filed on July 21 by an EPFO representative alleging that RCL issued secured Non-Convertible Debentures (NCDs) in 2013 and 2014, in which the pension body invested ₹2,500 crore through four portfolio managers for a 10-year period.

According to the complaint, the EPFO received periodic coupon payments from RCL under the terms of the NCDs until September 2019, when the company’s credit rating was downgraded to D, following which it defaulted on its repayment obligations.

RCL was then part of the Reliance ADA Group. In 2021, the company entered the Corporate Insolvency Resolution Process (CIRP) and was acquired by IndusInd International Holdings Limited (IHIL) in March 2025.

The EPFO lodged a claim of ₹3,308.67 crore, comprising a principal amount of ₹2,500 crore and accrued interest of ₹808.67 crore, after the National Company Law Tribunal (NCLT), Mumbai, admitted RCL to the Corporate Insolvency Resolution Process (CIRP).

Following the approval of the resolution plan by the NCLT, under which IHIL took over the company on March 19, 2025, the EPFO recovered ₹1,492.45 crore, leaving an unrecovered principal of ₹1,007.55 crore and admitted interest of ₹808.67 crore.

Reliance Capital Ltd (RCL) and IndusInd International Holdings Limited (IHIL) could not be reached for comment till the time of going to press.

The EPFO decided to lodge the complaint after receiving a communication from the Enforcement Directorate (ED). The complaint said that a transaction audit and analysis of documentary evidence by the ED revealed serious deficiencies in the sanctioning and monitoring of inter-corporate deposits, lending to financially weak entities, diversion of funds, non-compliance with internal lending policies, masking of credit deterioration through fresh disbursements, write-offs of substantial exposures to group entities, and the utilisation of borrowed funds for purposes other than those represented.

“The information received from ED indicates that the default of Reliance Capital Limited has not been merely the result of commercial or financial distress, but has been preceded or accompanied by fraudulent transactions, diversion of funds and other acts,” the complaint stated, adding that these aspects required investigation by competent law enforcement authorities.

In an official release, the CBI said the investigation aims to identify the roles of all persons involved, including public servants and private individuals, examine the alleged criminal conspiracy, and trace the end use of the invested funds.

The CBI had earlier registered seven FIRs against four other Reliance ADA Group companies—Reliance Communications Ltd, Reliance Home Finance Ltd, Reliance Commercial Finance Ltd and Reliance Telecom Ltd—based on complaints received from public sector banks and the Life Insurance Corporation of India.

The agency has so far filed four chargesheets and arrested seven accused from the group entities. The investigation is being monitored by the Supreme Court.