Reliance Home Finance

The National Company Law Tribunal Mumbai Bench has admitted Reliance Home Finance Limited into Corporate Insolvency Resolution Process following an application by financial creditor Invent Assets Securitisation & Reconstruction Private Limited. The company defaulted on ₹7.81 crore including ₹80.98 lakh in outstanding interest as of December 3, 2024. The debt originated from an inter-corporate loan facility of ₹9.5 crore sanctioned in April 2023 with a 15-month repayment period and 10% annual interest. Mr. Umesh Balaram Sonkar has been appointed as Interim Resolution Professional, with the Board of Directors' powers now suspended. A moratorium has been declared prohibiting legal proceedings, asset transfers, and recovery actions against the company. The financial creditor must pay ₹2 lakh advance to the IRP within seven days to cover initial CIRP costs.

The Enforcement Directorate has initiated a money laundering investigation into suspected loan frauds by Reliance Home Finance Ltd. and Reliance Commercial Finance Ltd., based on two CBI FIRs. The probe involves loans totaling Rs 12,524 crore extended by RHFL and RCFL, with the majority disbursed to firms linked to the Reliance Anil Ambani Group. Of these loans, Rs 6,931 crore have been declared non-performing assets. Preliminary findings indicate funds were routed back to other Reliance group companies, suggesting circular lending practices. Yes Bank's Rana Kapoor played a key role in sanctioning these loans, with his family-linked firms also receiving credit facilities. A Grant Thornton audit has identified significant fund diversion and lending policy violations. The ED has conducted searches across 60 companies and 22 individuals. State Bank of India has declared Reliance Communications and Anil Ambani's account as fraud, filing a CBI complaint. SEBI has barred Anil Ambani and senior group executives from securities markets for five years and imposed monetary penalties for alleged fund diversion from Reliance Home Finance.

SEBI has issued demand notices totaling Rs 130 crore to five entities for illegal fund diversion from Reliance Home Finance Ltd. The entities have 15 days to pay or face asset and bank account attachment. This follows SEBI's August order barring Anil Ambani and 24 others from the securities market for five years due to fraudulent fund siphoning.