Capital markets regulator Sebi has ordered the freezing of bank accounts and share and mutual fund holdings of Anil Ambani-owned Reliance Big Entertainment. SEBI Rs. This order has been given to recover the due amount of 26 crores.
The penalty was imposed three months ago in a case related to Anil Ambani's company Reliance Home Finance Limited (RHFL). Recently SEBI in its investigation found that Anil Ambani embezzled money with the help of RHFL officials.
Sebi had on November 14 sent a notice to Reliance Big Entertainment Pvt Ltd (now known as RBEP Entertainment Pvt Ltd) and asked it to pay the dues within 15 days. Not being able to pay the penalty now SEBI has given this new order.
According to SEBI notification, Reliance Big Entertainment's Rs. 26 crores due includes interest and recovery costs.
3 months ago SEBI barred Anil Ambani from the market Three months ago, SEBI banned Anil Ambani for 5 years in case of misappropriation of funds from securities market (share market, debt, derivatives). Subsequently, Ambani was fined Rs 25 crore and was also banned from becoming a director in any listed company.
Reliance Home Finance Company has been banned for 6 months and fined Rs 6 lakh. According to the 222-page final order issued by SEBI, the investigation revealed that Anil Ambani embezzled the money with the help of RHFL officials. He used the funds himself, but pretended that the funds were given as loans.
Anil joined Reliance in 1983, demerged in June 2005
- Mukesh Ambani joined Reliance in 1981 and Anil Ambani in 1983. Dhirubhai Ambani passed away in July 2002. He did not leave after writing his will. Mukesh Ambani became the Chairman of Reliance Group and Anil Ambani became the Managing Director.
- The fight between brothers Mukesh Ambani and Anil Ambani first came to light in November 2004. Dhirubhai Ambani's wife Kokilaben was upset with the ongoing family feud, after which the business split.
- The split took place in June 2005, but it took until 2006 to decide which brother would get which company. VK Kamat, the then chairman of ICICI Bank, also had to intervene in the split.
- After the demerger, Mukesh Ambani got companies like Petrochemicals Business, Reliance Industries, Indian Petrol Chemicals Corp Ltd, Reliance Petroleum, Reliance Industrial Infrastructure Ltd.
- Younger brother Anil owns companies like RCom, Reliance Capital, Reliance Energy, Reliance Natural Resources. After this, the companies under Mukesh's leadership continued to grow, while the companies owned by Anil continued to deteriorate.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
