Latest news with #RelianceHomeFinance
Kuwait Times
5 days ago
- Business
- Kuwait Times
India's crime agency probes Reliance Group
NEW DELHI: India's financial crime-fighting agency searched 35 locations linked to Reliance Anil Ambani Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source said on Thursday. The Enforcement Directorate alleges the group orchestrated a 'well-planned' scheme to siphon off 30 billion rupees ($350 million) in loans from YES Bank to many shell companies between 2017 and 2019, the source said on condition of anonymity, as he was not authorized to speak to the media. Anil Ambani's Reliance Group entities are accused of paying bribes to YES Bank officials before loans were disbursed, the source said, adding that loan approvals violated the bank's processes. The probe also found gross violations in YES Bank's loan approval process, such as lending to companies with weak financials, backdating credit memos, 'evergreening' loans - issuing fresh loans to avoid labeling assets as non-performing - and misrepresenting financials. A Reliance Group source said YES Bank had granted loans to Anil Ambani's entities after following the due process, and the entire exposure was fully secured. The allegation that bribes were given to secure loans was incorrect, the source said, adding that Reliance Home Finance (RHFL) extended fully secured loans on merit to privately-held companies of Rana Kapoor, the erstwhile promoter of YES Bank. These loans were fully repaid, including interest, the source said. Representatives for Reliance Group and YES Bank did not respond to requests for comment. Several group firms of Anil Ambani, the younger brother of billionaire Mukesh Ambani, have gone into bankruptcy since 2017. YES Bank, from which Anil Ambani group firms had borrowed heavily, was declared insolvent in 2020 and rescued by a group of Indian lenders in a plan approved by the central bank. Japan's Sumitomo Mitsui Banking Corp is seeking a 20 percent stake in a deal that has yet to get regulatory approval. Kapoor was charged with bank fraud by the financial crime agency in 2020 and later arrested. He pleaded not guilty and was granted bail in 2024 by a special court in India's financial capital of Mumbai, according to local media reports. The financial crime agency can now seize or attach assets of Anil Ambani entities as the 'proceeds of crime', said Debopriyo Moulik, a lawyer at India's Supreme Court. However, the group companies can challenge the agency's findings in court, he said. Anil Ambani's group entities have been subject to several regulatory actions in recent years. In August 2024, the markets regulator SEBI barred Anil Ambani and 24 others from securities markets for five years, citing fund diversion from Reliance Home Finance. The markets regulator has shared findings of its investigation on Reliance Home Finance with the financial crime agency, which is likely to investigate a sharp rise in corporate loans granted by the finance company, the source said. Shares of Reliance Infrastructure and Reliance Power fell as much as 5 percent on Thursday after the news of the latest probe. The companies issued similar statements to Indian stock exchanges saying the agency's actions 'have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders' of the two companies. 'The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old,' the statements said. However, the government source said the agency's investigation found Reliance Infrastructure diverted over 100 billion rupees disguised as inter-corporate deposits (ICD) to other Reliance group entities through an undisclosed, but related entity. ICDs are unsecured loans extended by one company to another. An undisclosed related entity was used to bypass approvals from shareholders and the audit committee, the source said. The Reliance Group did not immediately respond to a separate Reuters' request seeking a comment on these allegations. Reliance Group's businesses range from defense to power and infrastructure, although Ambani himself is not on the boards of any listed entities, following orders passed by the market regulator, which Ambani has challenged. – Reuters
NDTV
24-07-2025
- Business
- NDTV
From Reliance Insurance To Housing, Anil Ambani's Troubles Worth Thousands Of Crores
New Delhi: Premises linked to Reliance Group Chairman Anil Ambani were raided by the Enforcement Directorate Thursday morning. The raids were connected to a money laundering case based on complaints registered with another federal agency, the Central Bureau of Investigation. The ED, sources said, examined records from over 50 firms and conducted searches at 35 locations across Delhi and Mumbai as part of this inquiry, and also questioned 25 people. The preliminary results reveal a " well-planned and thought-out scheme to siphon off public money by cheating banks, shareholders, investors and other public institutions", sources said. Once one of the world's richest men, Mr Ambani's one-time flourishing empire has crumbled under charges of frauds, fund diversions, forged guarantees, and defaults, in India and abroad. These include the State Bank of India, the country's largest public sector lender, reclassifying the loan account of Reliance Communications, a Reliance Group company, as a 'fraud'. It also includes Mr Ambani being fined Rs 25 crore and banned from the securities market for five years for diversion of funds from Reliance Home Finance, another group company. And, perhaps most infamously, it includes a notice from the Income Tax Department for evading Rs 422 crore in taxes on undisclosed funds nearly twice that amount in banks in Switzerland. Anil Ambani's Downfall The RCom 'fraud' tag In June the SBI declared the RCom loan account a 'fraud' and said it would report Mr Ambani - which it has not yet done - to the CBI. The bank claimed it had identified fund diversion, irregular accounting, and book manipulation through related RCom entities. RCom and its subsidiaries received Rs 31,580 crore in loans, the bank said. The SBI said there were 'deviations' in how these loans were utilised, and that these 'deviations' involved 'complex web of fund movements across multiple group entities'. A law firm representing Mr Ambani responded to the State Bank's charge. The law firm said Mr Ambani had been 'shocked' to receive the ex-parte - i.e., an order passed without hearing both sides - of the Fraud Identification Committee. Incidentally, this is not the first time the SBI has labelled the RCom account a 'fraud'. It did so in November 2020 and filed a complaint with the CBI on January 5, 2021. But the Delhi High Court issued a status quo order on January 6, leading to the withdrawal of the complaint. The SEBI Fine, Ban In August markets regulator SEBI banned Mr Ambani and 24 associates, including former key officials of Reliance Home Finance, from the securities market for five years. Mr Ambani was also fined Rs 25 crore and the company was fined an additional Rs 6 lakh. SEBI ruled Mr Ambani, with help from senior executives at Reliance Home Finance, fraudulently siphoned more than Rs 5,000 crore by disguising them as loans to entities linked to him. READ | Anil Ambani, 24 Others Banned From Securities Market For 5 Years The RHFL board issued directives to stop this but the orders were ignored. Anil Ambani used his position as 'Chairperson of the ADA group' and his significant indirect shareholding in the holding company of RHFL to orchestrate the fraud, SEBI said. The Insurance Scam Going back to 2018, the then-Governor of Jammu and Kashmir, Satya Pal Malik, scrapped a medical insurance scheme for government staff and their families, citing fraud. The scheme had been provided by Mr Ambani's Reliance General Insurance via a broker, Trinity Reinsurance. Mr Malik also claimed he had been offered Rs 300 crore in bribes. READ | J&K Ex Governor Summoned By CBI In Reliance Insurance Case The investigation rolled on for four years till January 2024, when assets worth Rs 37 crore belonging to the company, the broker, and subsidiaries, were attached by the ED. The Yes Bank Case The latest hammer blow is a list of suspected offences that also involve bribery of senior bank officials, including former promoters of Yes Bank Ltd, to facilitate large unsecured loans. Between 2017 and 2019, Yes Bank is said to have disbursed approximately Rs 3,000 crore in loans to companies operating under the Reliance Anil Ambani Group banner. The ED has said it has detected an illegal quid pro quo arrangement wherein promoters of Yes Bank allegedly received payments in privately-held concerns just before sanctioning loans. These 'loans' include those given to RHFL. According to a SEBI report, the firm's corporate loan portfolio nearly doubled from Rs 3,742 crore in FY 2017-18 to Rs 8,670 crore in FY 2018-19.
India.com
14-06-2025
- Business
- India.com
JACKPOT for investors of this Anil Ambani company as it provides 133% returns in..., not Reliance Power, Reliance Infra, the company is...
Anil Ambani (File) In a major boost for investors of Anil Ambani-led Reliance Group, the shareholders of the group's little-known Reliance Home Finance, has have earned a return of 133 percent on their investment in just month. According to data from the Bombay Stock Exchange (BSE), Reliance Home Finance shares, which were trading below Rs 10 a little while ago, have surged by 133.03 percent in a single month, gaining 18.86 percent in the past week, and an impressive 51.08 percent over two weeks. The stock of Reliance Home Finance has significantly outpaced the more prominent firms of Anil Ambani-led Reliance Group, such as Reliance Power and Reliance Infrastructure. As per data, investor have received one-month return of 133.03 per cent, compounded by a three-month surge of 149.68 percent, and six-month appreciation of over 101 percent. Why Reliance Home Finance stock has surged rapidly? According to analysts, speculative interest, short-term momentum, and low base effect, could be among the factors driving the rise of the stocks, even as the company has not publicly announced any significant turnaround in recent months. Currently, the market capitalisation of Reliance Home Finance stands at Rs 372.63 crore. Meanwhile, despite its golden run, the company lacks a Durability Score, making it ineligible due to weak or inconsistent financials, as per Trendlyne data. Analysts have also warned that the company's stock is currently in the 'P/E Sell Zone', which means it traded below its current P/E ratio of 15.3 nearly 80 percent of the time, indicating that most of the immediate upside could already be priced in. Reliance Infra scripts history Meanwhile, Anil Ambani-led Reliance Infrastructure achieved a historic milestone in India's defense sector, by becoming the first private firm to independently carry out a complete upgrade programme of a military aircraft without an original manufacturer (OEM). According to details, Anil Ambani-led Reliance Infra has successfully upgraded 55 Dornier-228 aircraft under a contract signed with state-owned Hindustan Aeronautics Limited (HAL), in which US-based Genesys Aerosystems was also a technical partner. The initial contract was for 37 aircraft, but Reliance Infra secured another order for 18 more Dornier-228 upgrades after successfully completing the first order.
India.com
25-05-2025
- Business
- India.com
Good news for Anil Ambani, Stocks of these 3 companies see MASSIVE spike, shares of Reliance Infra rose by...Reliance Power secured...
Anil Ambani (File) New Delhi: In a major development, the stock market on Friday witnessed a massive spike, which also led to a significant surge in blue-chip stocks. Amid this surge, Anil Ambani's companies also delivered impressive performances. Shares of three of Anil Ambani's companies also saw tremendous gains — Reliance Power surged by 16.48 percent, Reliance Home Finance rose by 10 percent, and Reliance Infrastructure gained 8 percent. It is important to note that this increase was recorded at market close but during intraday trading. The stock had jumped as much as 19 percent. However, the rise in shares of these three companies had different reasons. Reliance Home Finance Share The stock of Anil Ambani's company, Reliance Home Finance, closed at Rs 3.63 on Friday with a 10 percent upper circuit. The main reason behind this surge in the stock is the company's quarterly results—Reliance Home Finance has reported strong profits. The stock, which was at Rs 107 on 22nd September 2017, has now dropped to just Rs 3. Its market capitalization stands at Rs 175 crore. Compared to a loss of Rs 6.75 crore in the same quarter last year, Reliance Home Finance reported a net loss of Rs 0.69 crore in the fourth quarter. For FY25, the company posted a profit of Rs 24.17 crore, whereas in FY24, it had incurred a net loss of Rs 3.55 crore. The company is currently undergoing insolvency proceedings. Here are some of the key details: Life Insurance Corporation of India (LIC) holds a significant stake in Reliance Home Finance which was approximately 4.5% as of March 2025. LIC's presence is seen as a symbol of trust for investors. Reliance Power has secured a major order. Reliance Power made a preferential allotment of equity shares worth Rs 43.89 crore to two entities—Reliance Infrastructure Limited and Basera Home on May 20. The company has received a project worth approximately ₹2,000 crore as part of a joint venture with Bhutan. On Friday, its shares surged 16.48% to reach ₹51.94. Over the past six months, the stock has gained nearly 50%. Its 52-week high is Rs 53.64, while the 52-week low is Rs 23.30. During intraday trading on Friday, the shares rose by as much as 19 percent Stock Surge in Reliance Infra Too Reliance Defense entered into a strategic partnership in the ammunition sector on May 22. Reliance Defense is a company promoted by Reliance Infra, and Düsseldorf-based Rheinmetall AG. The decision marks the third major partnership for Reliance Defense. Previously, it had signed partnership deals with Dassault Aviation, the manufacturer of Rafale jets, and France's Thales Group. Following this news, shares of Reliance Infrastructure surged 8.50 percent, closing at Rs 307.50.
India.com
24-05-2025
- Business
- India.com
Anil Ambani strikes gold as shares of THIS Reliance Group company hit 'upper circuit', the company is..., stock price rises to...
Anil Ambani (File) Anil Ambani, the 'less successful' younger brother of Asia's richest man, Mukesh Ambani, has witnessed a remarkable turnaround of fortunes in the current financial year, and this trend continued at the stock market this week as shares of three Reliance Group companies witnessed a strong uptick on the last day of the trade week on Friday. Reliance Home Finance shares hit 'upper limit' According to market data, the share prices of Reliance Home Finance, hit the upper circuit of 10 percent, while Reliance Power stock was up 16.48 percent and Reliance Infrastructure closed up at around 8 percent. Reliance Home Finance shares, which opened at Rs 3.29, closed at Rs 3.63, up 10 percent at the end of day. The Reliance Group company, which is valued at around Rs 175 crore, recently announced its quarterly results, revealing that its net loss had reduced to Rs 0.69 crore in the fourth quarter, against Rs 6.75 crore at the same time last year. The company registered a profit of Rs 24.17 crore in FY25, against a net loss of Rs 3.55 crore in FY24, according to its Q4 results. Notably, Reliance Home Finance stock prices had once hit a peak of Rs 107, but fell to a paltry Rs 3 apiece due to various factors. However, the company's shares jumped 10 percent on Friday, closing a Rs 3.63 apiece. Reliance Home Finance resurgence Reliance Home Finance, a subsidiary of Anil Ambani-led Reliance Capital, peaked in September 2017 when its share traded at Rs 107 apiece, but the company's stock plunged to Rs 3 in 2024, a decline of over 97%, primarily due to financial challenges, rising NPAs, and the bankruptcy process of Reliance Capital under the National Company Law Tribunal (NCLT). Notably, Reliance Capital is currently undergoing bankruptcy proceedings under the NCLT. Reliance Capital was acquired by Hinduja Group's IndusInd International Holdings Limited (IIHL), with Chairman Ashok Hinduja announcing that the government has approved increasing the group's stake in the bank from 15% to 26%. Once approved by IRDAI, the the outstanding amount will be repaid to the lenders of Anil Ambani's Reliance Group, he said.
