The CBI has registered a criminal case against Reliance Capital and its former chairman Anil Ambani for allegedly cheating the national retirement fund. The probe focuses on investments that caused a massive loss of over ₹1,800 crore.
₹1,800 cr
EPFO Loss
⏳ Time Machine
How today’s news fits into the bigger picture
2005
The Ambani Empire Splits
Anil Ambani takes control of the financial services, telecom, and power businesses, embarking on a massive debt-fueled expansion drive.
2019
Reliance Capital Defaults
Faced with severe cash crunches, the company defaults on several debt payments, raising alarms among major institutional lenders and mutual funds.
2021
RBI Steps In
The Reserve Bank of India supersedes the board of Reliance Capital due to serious governance concerns and initiates bankruptcy proceedings.
Today
Anil Ambani is booked by the CBI for allegedly causing an ₹1,800 crore loss to EPFO.
What happens next?
CBI will summon the ex-promoters for questioning while lenders attempt to complete the insolvency sale.
On Saturday, the Central Bureau of Investigation booked Reliance Capital and its former chairman Anil Ambani following a direct complaint from the Union Ministry of Labour and Employment. The federal agency alleges cheating, criminal conspiracy, and criminal misconduct that caused a massive loss of over ₹1,800 crore to the Employees' Provident Fund Organisation. The retirement funds were reportedly diverted or invested in ways that violated safety guidelines, leaving retirement savers with massive holes in their pockets. While Reliance Capital is currently undergoing a bankruptcy resolution process, this criminal probe escalates the legal troubles for its former promoters. For EPFO, which manages the pension corpuses of millions of Indian salaried employees, this case highlights the persistent risks of investing in private debt securities and underscores the government's determination to hold corporate leaders personally liable for structural financial collapses.
💭 If you're wondering…
The EPFO is India's national retirement fund for salaried employees. It invested in Reliance Capital's debt securities to earn higher interest rates than government bonds allow, but those securities defaulted when the company failed.
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Official sources
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