Govt orders SFIO Investigation against Reliance Home Finance & other associated cos

The government has on October 30, 2015 issued direction to director Serious Fraud Investigation Office to appoint inspector for investigating into the affairs of Reliance Home Finance Limited and Others under section 212 of the Companies Act, 2013, and submit the report in one year. The copy of the direction has been reproduced below.

1. Whereas the Central Government is empowered under section 212(1)(c) of the Companies Act, 2013 to order an investigation into the affairs of a company by the Serious Fraud Investigation Office, in the public interest.

2. Whereas based on the CEIB reference dated 20.11.2024, 25.6.2024 & 17.5.2021 sharing information regarding investigation conducted by SEBI and orders passed imposing huge penalties against Reliance Home Finance Limited and others and sharing FMR reported by Punjab & Sind Bank reporting amount of fraud of Rs. 593.33 crores. Also, MRAU report received from SFIO in the matter of Reliance Home Finance Limited and Reliance Capital Limited highlighting serious concerns of diversion / siphoning of funds by the companies.

3. Whereas, SEBr reference dated 15.5.2025 sharing investigation report in the matter of Reliance Infrastructure Limited regarding diversion of money disguised as inter-corporate deposits to various companies belonging to Reliance ADA group through CLE Private Limited, an undisclosed related party.

4. Now, therefore, in exercise of the powers u/s.212(1)(c) of the Companies Act, 2013, the Central Government hereby order investigation into the affairs of-

(i) Reliance Home Finance Limited
(ii) Reliance Capital Limited
(iii) Reliance Infrastructure Limited
(iv) CLE Private Limited

including their holding companies, subsidiary companies, associate & joint venture companies & related party transactions, to be carried out by the Serious Fraud Investigation Office (SFIO) in the public interest.

5. The scope of the investigation shall include but not limited to –

(i) to investigate the CEIS reference, MRAU report and findings / orders / reference of SESI and any other agency(s) under the Company Law angle;

(ii) to investigate on the bank loans and flow of funds of the money trail on the transactions;
(iii) to investigate the transactions amongst the group companies / entities, RPTs, Loans and Advances, Investments, etc;
(iv) to unearth diversion or siphoning of funds, money laundering and identify the beneficiaries thereof;
(v) to investigate any other contraventions, violations, non-compliances under the Companies Act and other laws.
(vi) any other aspects noticed during the course of investigation

6. The Director, SFIO, in exercise of the power vested u/s.212 of the Act, shall appoint one or more inspector(s) to investigate into the affairs of the aforesaid companies. That the inspector(s) so appointed shall exercise all the powers available to them under section 217 of the Act, including powers conferred under section 219 of the Act, after seeking prior approval of the Central Government wherever required.

7. The inspector(s) shall complete the investigation on priority and submit the report to the Central Government within 1 (one) year.

This is issued with the approval of the Competent Authority.