The Central Bureau of Investigation (CBI) has registered an FIR against Reliance Capital Limited, Mumbai, its former chairman and unidentified public servants, among others, in connection with an alleged LIC investment fraud.

 

The case was registered on the basis of a complaint filed by the Life Insurance Corporation of India, or LIC. According to the complaint, between 2012 and 2018, LIC subscribed to five Non-Convertible Debentures worth 3,900 crore rupees issued by Reliance Capital. The funds were meant for general corporate purposes, funding requirements and refinancing of existing debt. 

 

The CBI said LIC has alleged that the accused entered into a criminal conspiracy and committed offences including cheating, criminal breach of trust, and diversion and misappropriation of funds. The alleged acts caused a wrongful loss of around 2,685 crore rupees to LIC, with a corresponding wrongful gain to the accused and other beneficiaries.

 

The CBI said the investigation will identify the role of all persons involved, examine the alleged criminal conspiracy and trace the diversion of the invested funds. Earlier, the CBI had registered eight FIRs against companies including Reliance Communications, Reliance Capital, Reliance Home Finance and Reliance Telecom, based on complaints from various public sector banks, the EPFO and LIC. The agency has so far filed six charge sheets and arrested seven accused persons in these cases. The investigations are being monitored by the Supreme Court.