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CBI probes ₹1,816 cr EPFO loss linked to Anil Ambani

The Central Bureau of Investigation (CBI) has registered a case against businessman Anil Ambani and Reliance Capital Ltd (RCL) over an alleged ₹1,816.22-crore loss to the Employees’ Provident Fund Organisation (EPFO), bringing another major financial investigation involving the Reliance Anil Dhirubhai Ambani Group into focus.

The FIR, registered in Mumbai, names Reliance Capital, its former chairman Anil Ambani, unidentified public servants and other unknown persons. The CBI has alleged offences including criminal conspiracy, cheating, criminal breach of trust and criminal misconduct. The agency said the investigation will examine the role of everyone involved and trace where the money invested by EPFO ultimately went.

At the heart of the case is an investment made more than a decade ago. According to the CBI, EPFO invested ₹2,500 crore in secured non-convertible debentures (NCDs) issued by Reliance Capital during 2013 and 2014. The investment was made through four portfolio managers, including Reliance Capital Asset Management Ltd.

The debentures were scheduled to mature in 2023 and 2024. However, Reliance Capital subsequently defaulted on repayment. The CBI’s case is that fraudulent transactions and alleged diversion of funds contributed to the default, leaving EPFO with a substantial unpaid amount.

The agency has put the alleged wrongful loss at ₹1,007.55 crore, with a further ₹808.67 crore in interest liability, taking the total alleged loss to ₹1,816.22 crore.

The case originated with a complaint from EPFO, which manages retirement savings under the Employees’ Provident Fund Scheme, Pension Scheme and Deposit Linked Insurance Scheme. The organisation’s funds are held and managed by its Central Board of Trustees for the benefit of its subscribers.

The latest CBI action follows findings shared by the Enforcement Directorate (ED) with EPFO as part of a separate investigation into Reliance Capital. Based on those findings, EPFO approached the CBI with allegations concerning transactions carried out during the period when the company’s financial position was deteriorating.

Reliance Capital’s financial troubles became increasingly visible from 2019, and the company later entered the Corporate Insolvency Resolution Process (CIRP). The repayment of EPFO’s dues subsequently became part of the insolvency proceedings.

In 2021, EPFO filed its claim before the resolution professional. Following approval of the resolution plan by the National Company Law Tribunal (NCLT) in 2024, EPFO received around ₹1,492 crore against its dues.

However, a significant amount remained unpaid. The outstanding principal was about ₹1,007 crore, while interest of roughly ₹809 crore was also pending, according to the Times of India report.

The CBI is now examining whether the eventual default was simply the result of Reliance Capital’s financial difficulties or whether criminal acts contributed to the loss.

A key part of the investigation will be determining how the money raised through the NCDs was used. The agency said it will trace the end use of the invested funds and investigate the alleged conspiracy involving both private individuals and public servants.

Anil Ambani has denied any wrongdoing. A spokesperson for the businessman said the FIR relates to Reliance Capital and pointed out that Ambani had served as a non-executive director and chairman of the company’s board from 2005 until November 2021.

The spokesperson also noted that the Reserve Bank of India (RBI) superseded Reliance Capital’s board in November 2021 and appointed an administrator. Ambani, the spokesperson said, denies any wrongdoing and reserves all legal rights available to him.

The latest case adds to a series of investigations involving companies linked to the Anil Ambani group.

The CBI has previously registered cases involving Reliance Communications, Reliance Home Finance, Reliance Commercial Finance and Reliance Telecom, based on complaints from public sector banks and LIC. According to the agency, it has so far filed four chargesheets and arrested seven people in cases involving Reliance ADA Group companies.

The broader investigations have also attracted the attention of the Enforcement Directorate. In March, the ED said its investigation into Reliance Home Finance and Reliance Commercial Finance had uncovered alleged diversion of public funds through various group and intermediary entities. In July, the agency continued searches linked to the investigation and said it had seized documents and other material relating to suspected transactions and assets.

However, the EPFO investment fraud case is separate and focuses specifically on Reliance Capital’s NCDs and the alleged loss suffered by the retirement fund organisation.

For EPFO subscribers, the case is significant because it concerns money held for employees’ retirement and social-security benefits. The ₹2,500-crore investment was made years before Reliance Capital’s eventual financial collapse, but the repayment dispute has continued through insolvency proceedings and now a criminal investigation.

The CBI has not yet established guilt against the accused. Its FIR represents the beginning of the investigation, during which the agency will examine financial records, transactions, the role of company officials and the involvement, if any, of public servants.

The immediate focus will be on tracing the ₹2,500-crore EPFO investment, understanding how the funds were deployed and determining how the unpaid amount accumulated.

The investigation also comes at a time when authorities are pursuing several cases connected to the financial affairs of companies associated with Anil Ambani. The CBI said the Reliance-related investigations are being monitored by the Supreme Court and that it remains committed to conducting a comprehensive investigation.

For now, the central question is whether the EPFO loss was the result of a failed investment that followed Reliance Capital’s financial decline, or whether, as alleged by investigators, transactions and fund movements played a deliberate role in the eventual default. The CBI’s investigation is expected to shed more light on that question.

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Beyond

SC clarifies IBC moratorium covers companies only

The Supreme Court has ruled that the moratorium imposed under the Insolvency and Bankruptcy Code (IBC) applies only to the corporate debtor undergoing insolvency and does not extend to its directors, promoters, subsidiaries or other co-respondents. The judgment is expected to provide significant relief to homebuyers and other consumers by allowing legal proceedings against individuals associated with an insolvent company to continue, even while insolvency resolution is underway.

The verdict came in a case involving homebuyers of the Mantri Manyata Energia residential project, who had approached consumer forums seeking relief over delays and other grievances. When insolvency proceedings were initiated against the developer company, the National Consumer Disputes Redressal Commission (NCDRC) put the entire consumer complaint on hold, including proceedings against the company’s directors and other respondents.

Challenging the NCDRC’s decision, the homebuyers argued that the protection granted under the IBC moratorium was intended only for the company facing insolvency and should not automatically shield individuals or other entities named in the complaint.

Agreeing with the homebuyers, a Bench of Justices Vikram Nath and Sandeep Mehta ruled that the protection available under Section 14 of the Insolvency and Bankruptcy Code is limited strictly to the corporate debtor. The court held that there is nothing in the law to suggest that directors, promoters, subsidiaries, personal guarantors or other co-respondents receive the same protection merely because the company has entered the Corporate Insolvency Resolution Process (CIRP).

Setting aside the NCDRC’s order, the Supreme Court directed that consumer proceedings against respondents other than the corporate debtor should continue in accordance with law. At the same time, it clarified that the moratorium would remain applicable to the company undergoing insolvency until the resolution process is completed.

The Bench observed that the objective of the IBC moratorium is to preserve the assets of the corporate debtor and ensure an orderly insolvency resolution process. It is not meant to provide blanket immunity to everyone connected with the company. Extending the moratorium beyond the corporate debtor, the court said, would amount to rewriting the law, something that courts cannot do.

The judgment emphasised that Parliament has clearly defined the scope of Section 14. Since the provision specifically mentions only the corporate debtor, courts and tribunals cannot enlarge its coverage through interpretation. The Bench noted that if the legislature intended to protect directors or promoters, it would have expressly included them within the provision.

The ruling is particularly important for the real estate sector, where insolvency proceedings often leave homebuyers waiting for years to secure possession of their homes or obtain compensation. In many such cases, promoters and directors have sought to halt all legal proceedings by citing the IBC moratorium after the developer company entered insolvency.

The Supreme Court’s decision now removes that ambiguity. While claims against the company itself will remain subject to the statutory moratorium, legal proceedings against directors, promoters and other responsible parties can continue wherever the law permits. This means homebuyers and consumers are not left without legal remedies simply because the corporate entity is undergoing insolvency proceedings.

Legal experts believe the judgment strikes a balance between protecting the insolvency resolution process and safeguarding consumer rights. The Insolvency and Bankruptcy Code was enacted to facilitate a time-bound resolution of financially distressed companies while maximising the value of their assets. However, the court has made it clear that this objective cannot come at the cost of denying consumers access to justice against individuals who may also be accountable.

The ruling is also expected to guide consumer forums, insolvency tribunals and lower courts dealing with similar disputes. By clearly distinguishing between the corporate debtor and other respondents, the Supreme Court has reduced the possibility of blanket stays that delay consumer cases for years.

For thousands of homebuyers caught in stalled housing projects across the country, the verdict offers renewed hope. They can now continue pursuing legal action against promoters, directors and other parties connected with delayed or incomplete projects, even if the developer company is undergoing insolvency proceedings before the National Company Law Tribunal (NCLT).

The judgment reinforces the principle that IBC proceedings are intended to protect the corporate debtor alone and should not be used as a legal shield by every person associated with the company. By reaffirming the limited scope of the Section 14 moratorium, the Supreme Court has strengthened consumer protection while preserving the core objective of India’s insolvency framework.

The decision is expected to serve as a key precedent in future IBC cases, especially those involving real estate disputes, consumer complaints and corporate insolvency. It also sends a clear message that insolvency proceedings cannot become a means to escape individual accountability, ensuring that the rights of consumers remain protected even as companies undergo financial restructuring.

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Corporate

Anant Raj demerges Data Centre cloud business into subsidiary

Real estate developer Anant Raj Ltd. has approved the demerger of its fast-growing data centre and cloud services business into a separate wholly owned subsidiary, Ashok Cloud Technologies Private Limited, in a strategic move aimed at unlocking shareholder value and accelerating growth in India’s rapidly expanding digital infrastructure sector.

The company’s board cleared the proposal on Tuesday, marking a significant milestone in Anant Raj’s transformation from a traditional real estate developer into a diversified business with a strong presence in digital infrastructure, cloud computing and data centres.

Under the approved scheme, the entire data centre and cloud services undertaking of Anant Raj will be transferred to Ashok Cloud Technologies. The demerger is subject to regulatory approvals, including those from shareholders, creditors, stock exchanges, the National Company Law Tribunal (NCLT) and other statutory authorities.

The move reflects the company’s growing confidence in the long-term potential of India’s digital economy. As demand for cloud computing, artificial intelligence (AI), enterprise data storage and digital services continues to rise, companies are investing heavily in modern data centre infrastructure to support businesses, government agencies and technology platforms.

According to the company, creating a dedicated entity for the digital infrastructure business will allow it to pursue independent growth opportunities, attract specialised investors and improve operational efficiency. The restructuring is also expected to provide greater strategic flexibility for future partnerships, investments and expansion plans.

Anant Raj has steadily increased its investments in data centres over the past few years as enterprises shift their operations to cloud-based platforms. The company believes the sector offers significant long-term opportunities driven by rising internet usage, rapid digitalisation, increasing AI adoption and the government’s push for data localisation.

Industry experts say separating the data centre business from the real estate operations will provide greater transparency for investors. Each business has different capital requirements, growth cycles and valuation metrics. By housing the digital infrastructure business in a dedicated subsidiary, investors will be able to evaluate its performance more independently.

India’s data centre industry has witnessed remarkable growth over the past few years. Rising demand for artificial intelligence, cloud services, streaming platforms, fintech, e-commerce and digital payments has created an urgent need for secure, high-capacity data storage facilities. Global technology companies and domestic firms are investing billions of dollars to expand data centre capacity across major Indian cities.

The increasing use of AI applications has further accelerated demand for advanced computing infrastructure. AI models require enormous processing power and secure data storage, making data centres one of the fastest-growing segments of the digital economy. Companies with established infrastructure are therefore well positioned to benefit from this technological shift.

For Anant Raj, the restructuring is part of a broader strategy to diversify beyond conventional real estate development. While the company continues to develop residential, commercial and hospitality projects, it has identified digital infrastructure as a key future growth engine.

The company has already announced plans to expand its data centre footprint in the National Capital Region and strengthen its cloud services business. Industry observers believe the demerger could help Anant Raj attract strategic investors interested specifically in digital infrastructure and cloud computing, sectors that are drawing increasing investment globally.

The proposed transfer of assets and operations is expected to be carried out as a going concern, ensuring continuity for customers, employees and business partners. Existing contracts and operations related to the data centre and cloud business will move to the new subsidiary once the scheme becomes effective.

Market participants generally view corporate demergers positively when they enable businesses to sharpen their strategic focus. By separating high-growth digital operations from its traditional real estate business, Anant Raj aims to allow each vertical to pursue independent expansion while improving capital allocation and management efficiency.

The announcement also reflects the changing priorities of Indian real estate companies, many of which are exploring opportunities in technology-driven businesses as demand for digital infrastructure continues to grow. The convergence of real estate expertise with data centre development has emerged as a significant trend, given the large land and infrastructure requirements of modern data facilities.

Going forward, investors will closely monitor the regulatory approval process and the company’s expansion plans for Ashok Cloud Technologies. If completed as planned, the demerger is expected to strengthen Anant Raj’s position in India’s fast-growing data centre, cloud computing, AI infrastructure and digital transformation landscape.

As businesses increasingly migrate to cloud platforms and AI-powered applications become mainstream, Anant Raj’s strategic restructuring signals its ambition to become a significant player in one of the country’s most promising digital infrastructure sectors, while creating long-term value for shareholders.

Also Read: Cognizant wins $500 mn AI healthcare technology deal

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Corporate

Adani to split Jaypee assets post-takeover

The National Company Law Tribunal (NCLT) has approved Adani Enterprises Ltd’s resolution plan to acquire Jaiprakash Associates Ltd (JAL), the flagship of the Jaypee Group, under India’s Insolvency and Bankruptcy Code (IBC). This marks a key step in completing one of the largest insolvency acquisitions in the country.

The approved plan, valued at around ₹14,535 crore, received strong support from the Committee of Creditors (CoC) because it offered faster payouts and a practical settlement approach, even though some rival bids, including from Vedanta Ltd, were higher in nominal terms. With the CoC backing, the NCLT granted its sanction, paving the way for Adani to take control.

JAL operates across multiple sectors, including cement, real estate, power, engineering and construction, hospitality, and infrastructure. The Adani Group is now preparing a strategic restructuring of these businesses, which could involve segmenting operations and aligning them with Adani’s specialized entities. This approach is aimed at improving efficiency, maximizing synergies, and enhancing asset utilization.

Despite the approval, the process faces legal scrutiny. Vedanta has appealed to the National Company Law Appellate Tribunal (NCLAT), challenging the NCLT’s decision and the selection of Adani’s plan. The outcome of this appeal may affect the timeline of the asset restructuring.

The acquisition of Jaiprakash Associates, a major infrastructure company burdened with debt, represents a significant expansion of the Adani Group’s presence in India’s industrial and construction sectors.

Also Read: Global energy supply at risk, IEA issues stark warning

Categories
Corporate

NCLT clears ₹8,000-crore SeQuent–Viyash merger

The National Company Law Tribunal (NCLT) has approved the merger of SeQuent Scientific with Viyash Life Sciences in a deal valued at around ₹8,000 crore. The move brings together SeQuent’s animal-health business and Viyash’s pharmaceutical manufacturing capabilities under one larger platform.

As part of the merger, Viyash shareholders will receive 56 SeQuent shares for every 100 shares they hold. Viyash founder Hari Babu Bodepudi is expected to lead the combined entity as CEO once the integration is complete.

The merged company will have a wider global presence, operating across more than 150 countries. It will also benefit from a bigger research and development base and a significantly larger number of US FDA-approved manufacturing facilities.

The consolidation is aimed at improving profitability, strengthening the balance sheet, and unlocking cost efficiencies through shared procurement, operations and scaled-up production. The companies expect the integration to accelerate growth in both animal-health and human-health segments.

Also Read: NHAI opens public investment route for national highways