Anil Ambani’s Company Bank Accounts to Be Seized: SEBI Orders ₹26 Crore Recovery

The capital markets regulator, SEBI, has ordered the freezing of bank accounts, shares, and mutual fund holdings of Anil Ambani-owned Reliance Big Entertainment. The move aims to recover dues amounting to ₹26 crore.

Penalty Linked to RHFL Case

The penalty, imposed three months ago, relates to a case involving Anil Ambani’s company, Reliance Home Finance Limited (RHFL). SEBI’s investigation recently revealed financial irregularities by Anil Ambani with the help of RHFL officials.

SEBI’s Notice and New Orders

On November 14, SEBI issued a notice to Reliance Big Entertainment Private Limited (now known as RBEP Entertainment Private Limited), asking it to clear the dues within 15 days. Since the payment was not made, SEBI has issued this new directive.

Breakdown of the ₹26 Crore Dues

The ₹26 crore dues of Reliance Big Entertainment include interest and recovery costs, as per SEBI’s instructions.

SEBI’s Three-Month Ban on Anil Ambani

Three months ago, SEBI banned Anil Ambani from the securities market (equity, debt, and derivatives) for five years due to fund misuse allegations. Alongside, a penalty of ₹25 crore was imposed, and Ambani was barred from serving as a director in any listed company.

RHFL Penalized

Reliance Home Finance was banned for six months, and a penalty of ₹6 lakh was imposed. According to SEBI’s 222-page final order, Anil Ambani misused funds with the help of RHFL officials, falsely claiming that the funds were given out as loans.

The Split Between Anil and Mukesh Ambani

Entry into Reliance

Anil Ambani joined Reliance in 1983, while Mukesh Ambani joined earlier in 1981. After the demise of their father, Dhirubhai Ambani, in July 2002, who left no will, Mukesh became Chairman, and Anil became Managing Director of the Reliance Group.

Family Dispute and Business Split

The first public clash between Mukesh and Anil occurred in November 2004. Following dissatisfaction with family conflicts, Dhirubhai’s wife Kokilaben intervened, leading to the division of the business in June 2005. However, the allocation of companies was finalized in 2006, with ICICI Bank’s then-Chairman V.K. Kamath mediating the split.

Outcome of the Split

Mukesh Ambani took control of companies like Reliance Industries, Reliance Petroleum, and Indian Petrochemicals Corporation Limited. Anil Ambani retained businesses such as Reliance Communications, Reliance Capital, and Reliance Energy. Post-split, Mukesh’s companies thrived, while Anil’s businesses have faced significant challenges.