India’s financial markets regulator has dismissed settlement applications submitted by industrialist Anil Ambani and his corporate group amid allegations of misappropriating nearly $700 million in company funds. The Securities and Exchange Board of India (SEBI) rejected the requests last week, highlighting claims that Ambani and Reliance Infrastructure improperly transferred 65.26 billion Indian rupees (approximately $691 million) to entities connected to the company’s controlling shareholder.
In a significant development, SEBI alleged in September that these transactions represented a misappropriation of company funds, potentially aimed at personal gain rather than benefiting public shareholders. The Anil Ambani Group firmly denied these accusations, stating that the matters are currently sub judice and that they will continue to defend their position as advised legally.
Meanwhile, SEBI’s refusal to accept the settlement was influenced by ongoing investigations conducted by other Indian enforcement bodies, including agencies focused on financial crime and fraud. Under SEBI’s settlement framework, companies can resolve regulatory issues by paying fines without admitting guilt. However, when a settlement is declined, the regulator may issue a comprehensive order detailing the alleged violations, which could lead to financial penalties or restrictions on access to India’s capital markets.
This marks the second occasion SEBI has rejected a settlement proposal from Ambani. Last year, the regulator also declined his request to settle a separate case involving investments in Yes Bank.
Reliance Infrastructure had previously disclosed an exposure of 65.26 billion rupees to engineering contractor CLE Private Ltd, describing it as an independent entity. However, SEBI asserted that over a decade through 2024, Reliance Infrastructure diverted a substantially larger amount—176.7 billion rupees (around $1.9 billion)—to CLE. The regulator further stated that CLE invested at least 112 billion rupees into companies affiliated with the Ambani-led Reliance ADA Group.
SEBI’s findings, CLE effectively operated as a Reliance ADA Group company, indirectly controlled by Ambani and several other officials. Anil Ambani, the younger sibling of billionaire Mukesh Ambani, has faced intensified scrutiny from Indian regulators and enforcement agencies over the past 18 months. Several executives linked to his business empire have been arrested on fraud charges, and some of his properties have been frozen. These executives have denied any wrongdoing, with the cases still pending in courts.
