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Reliance Communications Says CBI Conducted Search And Seizure At Co Office
Feb 27 (Reuters) - Reliance Communications Ltd RLCM.NS:
CBI CONDUCTED SEARCH AND SEIZURE AT RELIANCE COMMUNICATIONS OFFICE
CBI SEIZED BOARD MEETING MINUTES FROM 2010 TO 2017
CBI OPERATIONS IS NOT EXPECTED TO HAVE ANY IMPACT ON FINANCIALS OF CO
Source text: ID:nNSEb3XKMk
Further company coverage: RLCM.NS
(([email protected];;))
Feb 27 (Reuters) - Reliance Communications Ltd RLCM.NS:
CBI CONDUCTED SEARCH AND SEIZURE AT RELIANCE COMMUNICATIONS OFFICE
CBI SEIZED BOARD MEETING MINUTES FROM 2010 TO 2017
CBI OPERATIONS IS NOT EXPECTED TO HAVE ANY IMPACT ON FINANCIALS OF CO
Source text: ID:nNSEb3XKMk
Further company coverage: RLCM.NS
(([email protected];;))
India's federal agency opens second criminal case against Anil Ambani, Reliance Communications
Feb 26 (Reuters) - India's federal investigating agency said on Thursday it has opened a second criminal case against industrialist Anil Ambani and his company Reliance Communications RLCM.NS following a complaint from Bank of Baroda BOB.NS over alleged diversion of loans exceeding 22.20 billion rupees ($244.21 million).
The Central Bureau of Investigation said various documents related to the loan transactions have been recovered as part of its searches at Ambani's house and the company's offices.
The account books of Reliance Communications "were manipulated and irregularities concealed", the agency said.
A spokesperson for Anil Ambani, Reliance Group and Bank of Baroda did not immediately respond to Reuters requests for comment.
Last year, the agency opened its first criminal case against Ambani and the company based on a complaint from India's largest bank, State Bank of India SBI.NS, over alleged fraud.
($1 = 90.9070 Indian rupees)
(Reporting by Nishit Navin in Bengaluru)
(([email protected];))
Feb 26 (Reuters) - India's federal investigating agency said on Thursday it has opened a second criminal case against industrialist Anil Ambani and his company Reliance Communications RLCM.NS following a complaint from Bank of Baroda BOB.NS over alleged diversion of loans exceeding 22.20 billion rupees ($244.21 million).
The Central Bureau of Investigation said various documents related to the loan transactions have been recovered as part of its searches at Ambani's house and the company's offices.
The account books of Reliance Communications "were manipulated and irregularities concealed", the agency said.
A spokesperson for Anil Ambani, Reliance Group and Bank of Baroda did not immediately respond to Reuters requests for comment.
Last year, the agency opened its first criminal case against Ambani and the company based on a complaint from India's largest bank, State Bank of India SBI.NS, over alleged fraud.
($1 = 90.9070 Indian rupees)
(Reporting by Nishit Navin in Bengaluru)
(([email protected];))
India's Enforcement Directorate Arrests Former Reliance Communications Director In Alleged Fraud, Money Laundering Case
Jan 30 (Reuters) -
INDIA'S ENFORCEMENT DIRECTORATE: ARRESTED PUNIT GARG, EX-DIRECTOR OF RELIANCE COMMUNICATIONS IN ALLEGED RCOM FRAUD, MONEY LAUNDERING CASE
INDIA'S ENFORCEMENT DIRECTORATE: PROBE SHOWS GARG DIVERTED PROCEEDS OF CRIME TO OFFSHORE ENTITIES
Source text: [ID:]
Further company coverage: RLCM.NS
(([email protected];))
Jan 30 (Reuters) -
INDIA'S ENFORCEMENT DIRECTORATE: ARRESTED PUNIT GARG, EX-DIRECTOR OF RELIANCE COMMUNICATIONS IN ALLEGED RCOM FRAUD, MONEY LAUNDERING CASE
INDIA'S ENFORCEMENT DIRECTORATE: PROBE SHOWS GARG DIVERTED PROCEEDS OF CRIME TO OFFSHORE ENTITIES
Source text: [ID:]
Further company coverage: RLCM.NS
(([email protected];))
Reliance Communications Total Financial Indebtedness At 404.10 Billion Rupees As Of Dec 31
Jan 7 (Reuters) - Reliance Communications Ltd RLCM.NS:
TOTAL FINANCIAL INDEBTEDNESS AT 404.10 BILLION RUPEES AS OF DEC 31
Further company coverage: RLCM.NS
(([email protected];))
Jan 7 (Reuters) - Reliance Communications Ltd RLCM.NS:
TOTAL FINANCIAL INDEBTEDNESS AT 404.10 BILLION RUPEES AS OF DEC 31
Further company coverage: RLCM.NS
(([email protected];))
India's ED Provisionally Attaches Multiple Properties Worth 14.53 Billion Rupees In Reliance Communications Fraud Case
Nov 20 (Reuters) - Reliance Communications Ltd RLCM.NS:
INDIA'S ED: PROVISIONALLY ATTACHES MULTIPLE PROPERTIES WORTH 14.53 BILLION RUPEES IN RELIANCE COMMUNICATIONS FRAUD CASE
Source text: [ID:]
Further company coverage: RLCM.NS
(([email protected];))
Nov 20 (Reuters) - Reliance Communications Ltd RLCM.NS:
INDIA'S ED: PROVISIONALLY ATTACHES MULTIPLE PROPERTIES WORTH 14.53 BILLION RUPEES IN RELIANCE COMMUNICATIONS FRAUD CASE
Source text: [ID:]
Further company coverage: RLCM.NS
(([email protected];))
BREAKINGVIEWS-Ambani misses high bar for his global backers
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add conversion of Indian rupee into US dollar in the second paragraph.
By Shritama Bose
MUMBAI, Oct 16 (Reuters Breakingviews) - All that glitters isn't gold when it comes to India's richest man. When Mukesh Ambani lists his telecom business in Mumbai next year, it will be a blockbuster event for the country's capital markets but it also will crystallise underwhelming returns for the world's biggest tech companies, private equity firms and sovereign wealth funds who backed his consumer unit in 2020. It heralds a reset of how foreigners view tycoons and competition in the country.
Five years ago when the Covid pandemic was shaking the world, Ambani's conglomerate Reliance Industries RELI.NS sold 1.5 trillion rupees ($16.99 billion) of stock in Jio Platforms to investors led by Meta Platforms META.O, KKR KKR.N and Saudi Arabia's Public Investment Fund; the flood of funds into India at the time was so large it caused a spike in foreign direct investment.
At 5.16 trillion rupees including debt, or $59 billion at current exchange rates, the landmark fundraising valued Jio's enterprise at 23 times its EBITDA, a multiple twice its nearest rival Sunil Bharti Mittal's Bharti Airtel and one reminiscent of a fast-growing technology startup.
Part of the hype was justified. The telecom unit Ambani founded in 2016 rose quickly by launching a bruising price war and was given a wide berth by India's competition authorities. Jio became the country's top provider of mobile services and helped to push down data tariffs to the lowest in the world. It even accelerated the bankruptcy of Reliance Communications RLCM.NS, led by Ambani's brother Anil. By the time Ambani welcomed outside investors, India's telecoms market had shrunk to a quasi-duopoly with a joint venture between Britain's Vodafone VOD.L and Kumar Mangalam Birla as a weak third player.
Fast forward and Jio had 498 million voice and data customers as of June 30 . Yet while this consumer business within Ambani's oil-to-retail conglomerate has continued to grow, it also has failed to live up to expectations in some striking ways.
Five years on from its fundraising, Jio's enterprise, including net debt, is valued at 10.6 trillion rupees, based on an average estimate of six brokers. That is nearly twice the value investors assigned it in 2020 or equivalent to an annualised return of nearly about 15%, one percentage point more than the annualised gross return of the MSCI India Index over a five year period. Private equity investors typically target returns of 20% and much higher in India.
Measured a different way, Jio's potential return could be even lower. The enterprise is worth just 8.7 trillion rupees if it is valued on 10 times its EBITDA, the same multiple Bharti Airtel commands. At that valuation, Jio would hand its backers including KKR, Silver Lake and TPG, an annualised return of just over 10%.
One problem is that Jio does not look like a "next generation technology platform". In 2020, Jio talked up a dazzling list of investments across its "digital ecosystem" including in "smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain". Although Jio doesn't have legacy 3G infrastructure to manage like its rivals, it still makes 87% of its revenue and 94% of its EBITDA from its basic communications unit Reliance Jio Infocomm RELJ.NS rather than from digital services, per CLSA analysts.
What's more, Jio's customers spend less than Airtel's. Average revenue per user has grown 60% over the last five years to 209 rupees ($2.37) but that lags the 250 rupees Airtel's India users churn out. Airtel's EBITDA margin for India and South Asia is also higher than Jio's by a staggering 770 basis points and its current offerings in cloud and artificial intelligence services closely mirror its challenger's.
Nor does Jio appear to have delivered on its strategic ambitions. Meta's Facebook pumped $6 billion in for a 10% stake but Ambani - whose Reliance conglomerate is also the owner of India's biggest retailer - did not lure millions of small grocers to transact on the payments system on WhatsApp, the U.S. company's social messaging platform - as was widely expected.
The rise of quick-commerce operations by Prosus-backed Swiggy SWIG.NS and Zomato-owner Eternal ETEA.NS killed Reliance Retail's 2022 attempt to enable grocery shopping through the messaging app. Similarly, Alphabet's Google GOOGL.O invested $4.5 billion in Jio but demand for the low-cost smartphone the duo launched in 2021 was weak; the telecom operator's wide reach didn't guarantee it a market.
Ambani's backers underestimated the strength of competition in India. They would have been better off if they had backed Bharti Airtel. Its shares have returned roughly 40% annually, including dividends, since 2020, significantly more than Jio looks set to deliver. Google enjoyed some of those spoils by hedging its bets: In 2022 it invested up to $1 billion in Jio's rival.
If Jio's returns are underwhelming, crystallizing them will be tough too. Ambani will need to launch one of India's largest initial public offerings. If 5% of the company's outstanding shares swap hands at a $120 billion valuation, Jio's bankers would need to find new owners for $6 billion of stock. That would be far too much for India's capital markets to swallow: Hyundai Motor India's HYUN.NS 279 billion rupee offering in 2024 remains the country's largest IPO, followed by Life Insurance Corporation's LIFI.NS 210 billion rupee deal in 2022.
Ambani could offer half the amount of stock or roughly $3 billion, using new rules from the Securities and Exchange Board of India but that would leave financial investors with billions of dollars of investments in Jio waiting for an exit; strategic investors, who may be willing to sit on their positions, bought about half of the $17 billion Jio initially raised.
Some of Jio's backers may still conclude that the investment was worth it. The dominance of family-led businesses in India often means that striking partnerships is increasingly seen as a matter of survival rather than choice for global companies and a way to protect themselves in the market. Global asset manager BlackRock BLK.N and China-founded online fast-fashion Shein are among others who are partnering with Ambani.
Yet an underwhelming payoff from Jio will strengthen the case for more scrutiny when foreign investors choose their local alliances in the future.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Reliance Industries will list its telecommunications unit by mid-2026, Chair Mukesh Ambani said at the conglomerate's annual shareholder meeting on August 29. "We are aiming to list Jio by the first-half of 2026, subject to all necessary approvals," he said.
Jio Platforms is targeting India's largest-ever initial public offering, IFR reported on September 5, citing unnamed bankers.
Jio's revenue per user will grow but continue to lag Airtel's https://www.reuters.com/graphics/BRV-BRV/gkplanlgqvb/chart.png
Bharti Airtel's shares have outperformed the broader market https://www.reuters.com/graphics/BRV-BRV/dwvklxzrzpm/chart.png
Global investors bought one third of Jio Platforms in 2020 https://www.reuters.com/graphics/BRV-BRV/lbvgzkljqpq/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add conversion of Indian rupee into US dollar in the second paragraph.
By Shritama Bose
MUMBAI, Oct 16 (Reuters Breakingviews) - All that glitters isn't gold when it comes to India's richest man. When Mukesh Ambani lists his telecom business in Mumbai next year, it will be a blockbuster event for the country's capital markets but it also will crystallise underwhelming returns for the world's biggest tech companies, private equity firms and sovereign wealth funds who backed his consumer unit in 2020. It heralds a reset of how foreigners view tycoons and competition in the country.
Five years ago when the Covid pandemic was shaking the world, Ambani's conglomerate Reliance Industries RELI.NS sold 1.5 trillion rupees ($16.99 billion) of stock in Jio Platforms to investors led by Meta Platforms META.O, KKR KKR.N and Saudi Arabia's Public Investment Fund; the flood of funds into India at the time was so large it caused a spike in foreign direct investment.
At 5.16 trillion rupees including debt, or $59 billion at current exchange rates, the landmark fundraising valued Jio's enterprise at 23 times its EBITDA, a multiple twice its nearest rival Sunil Bharti Mittal's Bharti Airtel and one reminiscent of a fast-growing technology startup.
Part of the hype was justified. The telecom unit Ambani founded in 2016 rose quickly by launching a bruising price war and was given a wide berth by India's competition authorities. Jio became the country's top provider of mobile services and helped to push down data tariffs to the lowest in the world. It even accelerated the bankruptcy of Reliance Communications RLCM.NS, led by Ambani's brother Anil. By the time Ambani welcomed outside investors, India's telecoms market had shrunk to a quasi-duopoly with a joint venture between Britain's Vodafone VOD.L and Kumar Mangalam Birla as a weak third player.
Fast forward and Jio had 498 million voice and data customers as of June 30 . Yet while this consumer business within Ambani's oil-to-retail conglomerate has continued to grow, it also has failed to live up to expectations in some striking ways.
Five years on from its fundraising, Jio's enterprise, including net debt, is valued at 10.6 trillion rupees, based on an average estimate of six brokers. That is nearly twice the value investors assigned it in 2020 or equivalent to an annualised return of nearly about 15%, one percentage point more than the annualised gross return of the MSCI India Index over a five year period. Private equity investors typically target returns of 20% and much higher in India.
Measured a different way, Jio's potential return could be even lower. The enterprise is worth just 8.7 trillion rupees if it is valued on 10 times its EBITDA, the same multiple Bharti Airtel commands. At that valuation, Jio would hand its backers including KKR, Silver Lake and TPG, an annualised return of just over 10%.
One problem is that Jio does not look like a "next generation technology platform". In 2020, Jio talked up a dazzling list of investments across its "digital ecosystem" including in "smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain". Although Jio doesn't have legacy 3G infrastructure to manage like its rivals, it still makes 87% of its revenue and 94% of its EBITDA from its basic communications unit Reliance Jio Infocomm RELJ.NS rather than from digital services, per CLSA analysts.
What's more, Jio's customers spend less than Airtel's. Average revenue per user has grown 60% over the last five years to 209 rupees ($2.37) but that lags the 250 rupees Airtel's India users churn out. Airtel's EBITDA margin for India and South Asia is also higher than Jio's by a staggering 770 basis points and its current offerings in cloud and artificial intelligence services closely mirror its challenger's.
Nor does Jio appear to have delivered on its strategic ambitions. Meta's Facebook pumped $6 billion in for a 10% stake but Ambani - whose Reliance conglomerate is also the owner of India's biggest retailer - did not lure millions of small grocers to transact on the payments system on WhatsApp, the U.S. company's social messaging platform - as was widely expected.
The rise of quick-commerce operations by Prosus-backed Swiggy SWIG.NS and Zomato-owner Eternal ETEA.NS killed Reliance Retail's 2022 attempt to enable grocery shopping through the messaging app. Similarly, Alphabet's Google GOOGL.O invested $4.5 billion in Jio but demand for the low-cost smartphone the duo launched in 2021 was weak; the telecom operator's wide reach didn't guarantee it a market.
Ambani's backers underestimated the strength of competition in India. They would have been better off if they had backed Bharti Airtel. Its shares have returned roughly 40% annually, including dividends, since 2020, significantly more than Jio looks set to deliver. Google enjoyed some of those spoils by hedging its bets: In 2022 it invested up to $1 billion in Jio's rival.
If Jio's returns are underwhelming, crystallizing them will be tough too. Ambani will need to launch one of India's largest initial public offerings. If 5% of the company's outstanding shares swap hands at a $120 billion valuation, Jio's bankers would need to find new owners for $6 billion of stock. That would be far too much for India's capital markets to swallow: Hyundai Motor India's HYUN.NS 279 billion rupee offering in 2024 remains the country's largest IPO, followed by Life Insurance Corporation's LIFI.NS 210 billion rupee deal in 2022.
Ambani could offer half the amount of stock or roughly $3 billion, using new rules from the Securities and Exchange Board of India but that would leave financial investors with billions of dollars of investments in Jio waiting for an exit; strategic investors, who may be willing to sit on their positions, bought about half of the $17 billion Jio initially raised.
Some of Jio's backers may still conclude that the investment was worth it. The dominance of family-led businesses in India often means that striking partnerships is increasingly seen as a matter of survival rather than choice for global companies and a way to protect themselves in the market. Global asset manager BlackRock BLK.N and China-founded online fast-fashion Shein are among others who are partnering with Ambani.
Yet an underwhelming payoff from Jio will strengthen the case for more scrutiny when foreign investors choose their local alliances in the future.
Follow Shritama Bose on LinkedIn and X.
CONTEXT NEWS
Reliance Industries will list its telecommunications unit by mid-2026, Chair Mukesh Ambani said at the conglomerate's annual shareholder meeting on August 29. "We are aiming to list Jio by the first-half of 2026, subject to all necessary approvals," he said.
Jio Platforms is targeting India's largest-ever initial public offering, IFR reported on September 5, citing unnamed bankers.
Jio's revenue per user will grow but continue to lag Airtel's https://www.reuters.com/graphics/BRV-BRV/gkplanlgqvb/chart.png
Bharti Airtel's shares have outperformed the broader market https://www.reuters.com/graphics/BRV-BRV/dwvklxzrzpm/chart.png
Global investors bought one third of Jio Platforms in 2020 https://www.reuters.com/graphics/BRV-BRV/lbvgzkljqpq/chart.png
(Editing by Una Galani; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))
Reliance Communications Says Total Financial Indebtedness As Of Sept 30 At 404.1 Billion Rupees
Oct 7 (Reuters) - Reliance Communications Ltd RLCM.NS:
RELIANCE COMMUNICATIONS - TOTAL FINANCIAL INDEBTEDNESS AS OF SEPT 30 AT 404.1 BILLION RUPEES
Source text: ID:nNSE36WR9t
Further company coverage: RLCM.NS
(([email protected];))
Oct 7 (Reuters) - Reliance Communications Ltd RLCM.NS:
RELIANCE COMMUNICATIONS - TOTAL FINANCIAL INDEBTEDNESS AS OF SEPT 30 AT 404.1 BILLION RUPEES
Source text: ID:nNSE36WR9t
Further company coverage: RLCM.NS
(([email protected];))
Anil Ambani Categorically Denies All Allegations, Charges Made By Bank Of Baroda - Statement
Sept 5 (Reuters) - Bank of Baroda Ltd BOB.NS:
ANIL AMBANI CATEGORICALLY DENIES ALL ALLEGATIONS, CHARGES MADE BY BANK OF BARODA - STATEMENT
Source text: [ID:]
Further company coverage: BOB.NS
(([email protected];))
Sept 5 (Reuters) - Bank of Baroda Ltd BOB.NS:
ANIL AMBANI CATEGORICALLY DENIES ALL ALLEGATIONS, CHARGES MADE BY BANK OF BARODA - STATEMENT
Source text: [ID:]
Further company coverage: BOB.NS
(([email protected];))
Reliance Infra, Reliance Power slip after India's federal investigator opens criminal case against Anil Ambani
** Reliance Infrastructure RLIN.NS and Reliance Power RPOL.NS both fall 5%
** India's federal agency filed a criminal case against industrialist Anil Ambani and his company Reliance Communications RLCM.NS on Saturday over a 30 billion rupee (~$344 million) fraud complaint brought by State Bank of India SBI.NS
** RLIN, RPOL say the criminal investigation has no impact on business operations and financial performance
** A spokesperson for Ambani told Reuters "Mr. Ambani strongly denies all allegations and charges, and will duly defend himself"
** An email query to SBI was not answered immediately
** RLIN down ~14% YTD while RPOL up 4.5%
($1 = 87.3650 Indian rupees)
(Reporting by Urvi Dugar)
** Reliance Infrastructure RLIN.NS and Reliance Power RPOL.NS both fall 5%
** India's federal agency filed a criminal case against industrialist Anil Ambani and his company Reliance Communications RLCM.NS on Saturday over a 30 billion rupee (~$344 million) fraud complaint brought by State Bank of India SBI.NS
** RLIN, RPOL say the criminal investigation has no impact on business operations and financial performance
** A spokesperson for Ambani told Reuters "Mr. Ambani strongly denies all allegations and charges, and will duly defend himself"
** An email query to SBI was not answered immediately
** RLIN down ~14% YTD while RPOL up 4.5%
($1 = 87.3650 Indian rupees)
(Reporting by Urvi Dugar)
Reliance Communications Says Total Financial Indebtedness As On June 30 At 404.13 Bln Rupees
July 3 (Reuters) - Reliance Communications Ltd RLCM.NS:
TOTAL FINANCIAL INDEBTEDNESS AS ON JUNE 30 AT 404.13 BILLION RUPEES
AMOUNT OF DEFAULT AS ON JUNE 30 AT 288.26 BILLION RUPEES
Source text: [ID:]
Further company coverage: RLCM.NS
(([email protected];;))
July 3 (Reuters) - Reliance Communications Ltd RLCM.NS:
TOTAL FINANCIAL INDEBTEDNESS AS ON JUNE 30 AT 404.13 BILLION RUPEES
AMOUNT OF DEFAULT AS ON JUNE 30 AT 288.26 BILLION RUPEES
Source text: [ID:]
Further company coverage: RLCM.NS
(([email protected];;))
Reliance Communications loan account flagged by SBI for suspected fraud
Reliance Communications is going through insolvency proceedings
Company's debt stood at $4.7 billion in March, it said in April
SBI letter says it will report Anil Ambani to central bank
Writes through, adding comment from Anil Ambani's lawyers and Reliance Communications spokesperson
By Jayshree P Upadhyay and Hritam Mukherjee
MUMBAI, July 2 (Reuters) - State Bank of India (SBI) SBI.NS is classifying the loan account of insolvent Reliance Communications RLCM.NS as fraudulent, citing alleged diversion of funds in a case dating back to 2016.
The disclosure was made by Reliance Communications in a securities filing that attached a June 23 letter from SBI detailing the reasons behind the decision by India's biggest lender.
Under Indian banking laws, once an account is reported as fraudulent, the matter is referred to enforcement agencies for criminal action and the borrower is barred from securing further finance from banks and other regulated financial institutions for an initial period of five years.
Reliance Communications disclosed in April that its total debt stood at 404 billion rupees ($4.71 billion) in March.
SBI's letter also said it would report Anil Ambani to the Reserve Bank of India, in compliance with Indian banking regulations.
Ambani, who was a director of Reliance Communications, is pursuing the matter as legally advised, a spokesperson for Reliance Communications said on Wednesday.
Lawyers for Ambani, in a letter reviewed by Reuters, asked SBI on Wednesday to withdraw the order classifying the Reliance Communications' loan account as fraudulent and to refrain from reporting their client to the RBI, saying SBI had not given him the opportunity of a personal hearing.
The bank did not respond to Ambani's communications for almost a year, Agarwal Law Associates added in the letter.
The Reliance Communications securities filing late on Tuesday said that its insolvency proceedings protect the company from any orders by any other authority and court of law.
SBI did not immediately respond to Reuters' emailed request for comment outside business hours.
The bank's initial letter to the company said that it gave Ambani and Reliance Communications several chances to respond to the allegations but found their replies insufficient, the Reliance Communications filing showed.
($1 = 85.6880 Indian rupees)
(Additional reporting by Ananta Agarwal
Editing by Mrigank Dhaniwala, Muralikumar Anantharaman and David Goodman
)
(([email protected]; X: @MukherjeeHritam;))
Reliance Communications is going through insolvency proceedings
Company's debt stood at $4.7 billion in March, it said in April
SBI letter says it will report Anil Ambani to central bank
Writes through, adding comment from Anil Ambani's lawyers and Reliance Communications spokesperson
By Jayshree P Upadhyay and Hritam Mukherjee
MUMBAI, July 2 (Reuters) - State Bank of India (SBI) SBI.NS is classifying the loan account of insolvent Reliance Communications RLCM.NS as fraudulent, citing alleged diversion of funds in a case dating back to 2016.
The disclosure was made by Reliance Communications in a securities filing that attached a June 23 letter from SBI detailing the reasons behind the decision by India's biggest lender.
Under Indian banking laws, once an account is reported as fraudulent, the matter is referred to enforcement agencies for criminal action and the borrower is barred from securing further finance from banks and other regulated financial institutions for an initial period of five years.
Reliance Communications disclosed in April that its total debt stood at 404 billion rupees ($4.71 billion) in March.
SBI's letter also said it would report Anil Ambani to the Reserve Bank of India, in compliance with Indian banking regulations.
Ambani, who was a director of Reliance Communications, is pursuing the matter as legally advised, a spokesperson for Reliance Communications said on Wednesday.
Lawyers for Ambani, in a letter reviewed by Reuters, asked SBI on Wednesday to withdraw the order classifying the Reliance Communications' loan account as fraudulent and to refrain from reporting their client to the RBI, saying SBI had not given him the opportunity of a personal hearing.
The bank did not respond to Ambani's communications for almost a year, Agarwal Law Associates added in the letter.
The Reliance Communications securities filing late on Tuesday said that its insolvency proceedings protect the company from any orders by any other authority and court of law.
SBI did not immediately respond to Reuters' emailed request for comment outside business hours.
The bank's initial letter to the company said that it gave Ambani and Reliance Communications several chances to respond to the allegations but found their replies insufficient, the Reliance Communications filing showed.
($1 = 85.6880 Indian rupees)
(Additional reporting by Ananta Agarwal
Editing by Mrigank Dhaniwala, Muralikumar Anantharaman and David Goodman
)
(([email protected]; X: @MukherjeeHritam;))
Anil Ambani banned from Indian securities market for 5 years
Adds shares in paragraph 9, details from the order from paragraph 10, other detail and backgroud throughout
By Jayshree P Upadhyay
MUMBAI, Aug 23 (Reuters) - India's markets regulator late on Thursday banned Anil Ambani, one of India's best-known businessmen, and 24 others from the securities market for five years on charges of diversion of funds.
The Securities and Exchange Board of India (SEBI) also imposed a fine of 250 million rupees (about $3 million) on Ambani, saying he orchestrated a scheme to "siphon off" funds from Reliance Home Finance Ltd
The ban means Ambani and the others affected are restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, the regulator said.
The regulator said the "fraudulent" scheme was to "siphon off" funds from Reliance Home Finance, which provides loans for housing and construction, by structuring those funds as loans to credit-unworthy borrowers.
Most of these borrowers were linked to "promoters", an Indian term for large shareholders with the ability to influence company decisions, the SEBI added.
A spokesperson for Reliance Group did not immediately respond to an email seeking comment.
Reliance Group - which spans financial services, infrastructure and telecommunications - was created in July 2006 following a demerger from Reliance Industries Ltd RELI.NS, which is led by Anil's brother Mukesh Ambani.
Anil has seen three of the largest firms within the group, including Reliance Communications, Reliance Capital and Reliance Infrastructure, undergoing bankruptcy or debt restructuring.
Reliance Home Finance RLIC.NS shares shed 5%, while among other listed entities within the group, Reliance Infrastructure RLIN.NS shares were down nearly 13% and Reliance Power RPOL.NS dropped 5% as of 1:24 p.m. IST (0754 GMT).
The regulator charged Anil Ambani on two grounds - diversion of substantial funds of the company to the detriment of the company and its stakeholders, and for acts of concealment from shareholders by manipulating its financial accounts.
The regulator said more than 90 billion Indian rupees worth of loans from Reliance Home Finance were made to "non-descript borrowers who had no demonstrable financial ability to repay any of it".
In addition, it said more than 50 billion rupees worth of loans were granted to entities connected to promoters of Reliance Group.
Given the obvious credit weaknesses of the borrowers, the probability of default by such borrowers - and hence the expected credit losses - was considerably higher than acknowledged in the financial statements, SEBI said.
“The facts of this case are particularly disturbing since it reveals a complete breakdown of governance in a large listed company, apparently orchestrated by and/ or at the behest of the promoter aided by the indulgent management of the company,” SEBI added.
The other 24 banned include executives of Reliance Group and other unlisted companies connected to Anil Ambani.
($1 = 83.8620 Indian rupees)
(Reporting by Jayshree P Upadhyay in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Savio D'Souza and David Holmes)
(([email protected]; X: @MukherjeeHritam))
Adds shares in paragraph 9, details from the order from paragraph 10, other detail and backgroud throughout
By Jayshree P Upadhyay
MUMBAI, Aug 23 (Reuters) - India's markets regulator late on Thursday banned Anil Ambani, one of India's best-known businessmen, and 24 others from the securities market for five years on charges of diversion of funds.
The Securities and Exchange Board of India (SEBI) also imposed a fine of 250 million rupees (about $3 million) on Ambani, saying he orchestrated a scheme to "siphon off" funds from Reliance Home Finance Ltd
The ban means Ambani and the others affected are restrained from accessing the securities market and prohibited from buying, selling or otherwise dealing in securities, directly or indirectly, the regulator said.
The regulator said the "fraudulent" scheme was to "siphon off" funds from Reliance Home Finance, which provides loans for housing and construction, by structuring those funds as loans to credit-unworthy borrowers.
Most of these borrowers were linked to "promoters", an Indian term for large shareholders with the ability to influence company decisions, the SEBI added.
A spokesperson for Reliance Group did not immediately respond to an email seeking comment.
Reliance Group - which spans financial services, infrastructure and telecommunications - was created in July 2006 following a demerger from Reliance Industries Ltd RELI.NS, which is led by Anil's brother Mukesh Ambani.
Anil has seen three of the largest firms within the group, including Reliance Communications, Reliance Capital and Reliance Infrastructure, undergoing bankruptcy or debt restructuring.
Reliance Home Finance RLIC.NS shares shed 5%, while among other listed entities within the group, Reliance Infrastructure RLIN.NS shares were down nearly 13% and Reliance Power RPOL.NS dropped 5% as of 1:24 p.m. IST (0754 GMT).
The regulator charged Anil Ambani on two grounds - diversion of substantial funds of the company to the detriment of the company and its stakeholders, and for acts of concealment from shareholders by manipulating its financial accounts.
The regulator said more than 90 billion Indian rupees worth of loans from Reliance Home Finance were made to "non-descript borrowers who had no demonstrable financial ability to repay any of it".
In addition, it said more than 50 billion rupees worth of loans were granted to entities connected to promoters of Reliance Group.
Given the obvious credit weaknesses of the borrowers, the probability of default by such borrowers - and hence the expected credit losses - was considerably higher than acknowledged in the financial statements, SEBI said.
“The facts of this case are particularly disturbing since it reveals a complete breakdown of governance in a large listed company, apparently orchestrated by and/ or at the behest of the promoter aided by the indulgent management of the company,” SEBI added.
The other 24 banned include executives of Reliance Group and other unlisted companies connected to Anil Ambani.
($1 = 83.8620 Indian rupees)
(Reporting by Jayshree P Upadhyay in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Savio D'Souza and David Holmes)
(([email protected]; X: @MukherjeeHritam))
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What does Reliance Comm do?
Reliance Communications is a key player in India's telecommunications sector, offering a wide range of services across the communications value chain. They own the world's largest next-generation IP connectivity infrastructure and operate globally through their subsidiary GCX.
Who are the competitors of Reliance Comm?
Reliance Comm major competitors are Aksh Optifibre, Advait Energy, MTNL, Sterlite Technologie, Tata Teleservice(Mah, Railtel Corp. India, Vodafone Idea. Market Cap of Reliance Comm is ₹241 Crs. While the median market cap of its peers are ₹7,761 Crs.
Is Reliance Comm financially stable compared to its competitors?
Reliance Comm seems to be less financially stable compared to its competitors. Altman Z score of Reliance Comm is -7.19 and is ranked 7 out of its 8 competitors.
Does Reliance Comm pay decent dividends?
The company seems to be paying a very low dividend. Investors need to see where the company is allocating its profits. Reliance Comm latest dividend payout ratio is 0% and 3yr average dividend payout ratio is 0%
How has Reliance Comm allocated its funds?
Companies resources are majorly tied in miscellaneous assets
How strong is Reliance Comm balance sheet?
Reliance Comm balance sheet is weak and might have solvency issues
Is the profitablity of Reliance Comm improving?
No, profit is decreasing. The profit of Reliance Comm is -₹10,530 Crs for TTM, -₹9,389 Crs for Mar 2025 and -₹7,212 Crs for Mar 2024.
Is the debt of Reliance Comm increasing or decreasing?
Yes, The net debt of Reliance Comm is increasing. Latest net debt of Reliance Comm is ₹46,782 Crs as of Sep-25. This is greater than Mar-25 when it was ₹46,338 Crs.
Is Reliance Comm stock expensive?
There is insufficient historical data to gauge this. Latest PE of Reliance Comm is 0
Has the share price of Reliance Comm grown faster than its competition?
Reliance Comm has given lower returns compared to its competitors. Reliance Comm has grown at ~-15.47% over the last 5yrs while peers have grown at a median rate of 11.41%
Is the promoter bullish about Reliance Comm?
Promoters stake in the company seems stable, and we need to go through filings and allocation of resources to gauge promoter bullishness. Latest quarter promoter holding in Reliance Comm is 0.77% and last quarter promoter holding is 0.77%.
Are mutual funds buying/selling Reliance Comm?
The mutual fund holding of Reliance Comm is stable. The current mutual fund holding in Reliance Comm is 0.01% while previous quarter holding is 0.01%.