India investigation bureau files criminal case against brother of Asia’s richest man

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The criminal case against Reliance Communications, its former director, Mr Anil Ambani, and several other people follows a fraud complaint from the State Bank of India.

PHOTO: REUTERS

India’s Central Bureau of Investigation said it registered a criminal case against Reliance Communications, its former director, Mr Anil Ambani, and several other people following a fraud complaint from the State Bank of India (SBI).

The SBI, the country’s biggest lender by asset size, alleged it faced the wrongful loss of 29.3 billion rupees (S$430 million) after the accused engaged in a criminal conspiracy to misrepresent and sanction credit facilities in favor of the company, according to a statement on Aug 23.

The accusations also point to the misusing and diversion of loan funds.

A spokesperson for Reliance Communications wasn’t immediately available for comment.

The investigative agency said it obtained search warrants on Aug 22, allowing a formal inspection that same day of the Reliance Communications premises and the residence of Mr Ambani, who is a tycoon and the younger sibling of

billionaire Mukesh Ambani

“The searches are still continuing,” the agency said in the statement.

Companies controlled by Mr Anil Ambani’s Reliance Group have seen massive value erosion in recent years amid their prolonged struggle to repay debts and expand various businesses, with some even facing bankruptcies.

Earlier this month, Reuters reported that India’s market regulator rejected a plea by him to settle charges related to investments in the lender Yes Bank. BLOOMBERG