SEBI Issues Show Cause Notices to Reliance Power and Reliance Infrastructure for Alleged Fraudulent Practices
SEBI has issued show cause notices to Reliance Power Ltd. and Reliance Infrastructure Ltd. for alleged violations of fraudulent and unfair trade practices regulations. The notices relate to Reliance Infrastructure's exposure in CLE Private Limited. Reliance Infrastructure claims the dispute with CLE was settled through mediation for Rs 6,503.00 crore. The Enforcement Directorate conducted raids on premises linked to the Reliance Anil Ambani Group over allegations of illegal loan diversion. Shares of both companies declined following the news, with Reliance Power down 2.40% and Reliance Infrastructure down 2.20%. Reliance Infrastructure has acknowledged receiving the notice and plans to take appropriate legal steps in response.

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The Securities and Exchange Board of India (SEBI) has issued show cause notices to Reliance Power Ltd. and Reliance Infrastructure Ltd. , both part of the Anil Ambani group, for alleged violations of fraudulent and unfair trade practices regulations. This development comes in the wake of ongoing scrutiny of the group's financial dealings.
Key Points of the SEBI Notice
- The notices pertain to Reliance Infrastructure's exposure in CLE Private Limited.
- Reliance Infrastructure has stated that the dispute with CLE was settled through mediation conducted by a retired Supreme Court judge.
- A settlement agreement of Rs 6,503.00 crore was reached in February.
Recent Developments and Market Reaction
- The Enforcement Directorate conducted raids on over 35 premises and searched more than 50 companies linked to the Reliance Anil Ambani Group.
- The raids were related to allegations of illegal loan diversion.
- Reliance Infrastructure has denied fund diversion allegations, stating it had a net exposure of Rs 6,500.00 crore, which was disclosed in financial statements over four years.
- The market reacted negatively to the news, with shares of both companies declining:
Company | Change |
---|---|
Reliance Power | -2.40% |
Reliance Infrastructure | -2.20% |
- In contrast, the BSE Sensex gained 0.70% on the same day.
Reliance Infrastructure's Response
According to the latest LODR (Listing Obligations and Disclosure Requirements) data filed by Reliance Infrastructure:
- The company acknowledged receiving a Show Cause Notice from SEBI for alleged violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, read with the SEBI Act, 1992.
- Reliance Infrastructure emphasized that the settlement with CLE Private Limited has been concluded and fully implemented under the Mediation Act, 2023.
- The company stated it would take appropriate legal steps in response to the notice.
Implications and Next Steps
The issuance of show cause notices by SEBI marks a significant development in the ongoing scrutiny of the Anil Ambani group companies. While Reliance Infrastructure maintains that the dispute with CLE Private Limited has been settled, the regulatory action suggests that SEBI may have concerns about the nature of the transactions or disclosures made.
As the situation unfolds, investors and market watchers will be keenly observing how these companies respond to the regulatory challenges and what impact this might have on their financial standing and market perception.
The companies now face the task of addressing SEBI's concerns while managing investor confidence in an already challenging market environment for the group.
Historical Stock Returns for Reliance Infrastructure
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-1.10% | -4.55% | -14.47% | -5.23% | -22.36% | +940.36% |