SEBI Issues Show Cause Notices to Reliance Power and Reliance Infrastructure for Alleged Fraudulent Practices

2 min read     Updated on 07 Oct 2025, 07:17 AM
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Overview

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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*this image is generated using AI for illustrative purposes only.

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 Day5 Days1 Month6 Months1 Year5 Years
-1.10%-4.55%-14.47%-5.23%-22.36%+940.36%
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Bombay High Court Upholds SBI's Fraud Classification of Anil Ambani's Loan Account

1 min read     Updated on 03 Oct 2025, 08:08 PM
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Reviewed by
Naman SharmaScanX News Team
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Overview

The Bombay High Court has rejected Anil Ambani's plea against State Bank of India's decision to classify his loan account as fraudulent. This ruling upholds SBI's classification and could have significant implications for Ambani's financial dealings and reputation. The court's decision reinforces SBI's stance and adds to the ongoing scrutiny of Ambani's business affairs.

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*this image is generated using AI for illustrative purposes only.

In a significant legal development, the Bombay High Court has dismissed Anil Ambani's challenge against State Bank of India's (SBI) decision to classify his loan account as fraudulent. This ruling marks a crucial moment in the ongoing financial scrutiny of the prominent businessman's affairs.

Court Rejects Ambani's Plea

The Bombay High Court's decision upholds SBI's classification, dealing a blow to Ambani's efforts to contest the fraud categorization. This ruling effectively validates the bank's stance on the nature of the loan account in question.

Implications of the Fraud Classification

The court's rejection of Ambani's appeal could have far-reaching consequences for his financial dealings and reputation. Fraud classification by a major bank like SBI is a serious matter that can impact an individual's or company's ability to access credit and conduct business operations.

SBI's Position Reinforced

By maintaining the fraud classification, the court has reinforced SBI's decision-making process in this high-profile case. This outcome may be seen as a validation of the bank's risk assessment and classification procedures.

Broader Context

This legal battle is part of a larger narrative surrounding Anil Ambani's financial challenges in recent years. The court's decision adds another chapter to the ongoing scrutiny of his business dealings and loan arrangements with major financial institutions.

The ruling underscores the judiciary's role in adjudicating disputes between high-net-worth individuals and financial institutions, particularly in matters involving allegations of fraudulent activities.

As this story continues to unfold, it will likely draw attention from various stakeholders in the financial and legal sectors. The case of Reliance Infrastructure and its promoter Anil Ambani highlights the complex interplay between corporate governance, banking regulations, and legal oversight in India's financial landscape.

Historical Stock Returns for Reliance Infrastructure

1 Day5 Days1 Month6 Months1 Year5 Years
-1.10%-4.55%-14.47%-5.23%-22.36%+940.36%
Reliance Infrastructure
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