Sebi bars Reliance Home Finance, Anil Ambani, 3 others from securities market
New Delhi, Feb 12: Sebi on Friday restrained Reliance Home Finance Ltd, industrialist Anil Ambani and three other individuals from the securities market for allegedly siphoning off funds from the company.
The three other individuals are Amit Bapna, Ravindra Sudhakar and Pinkesh R Shah.
In a 100-page interim order, the regulator also restrained the individuals from "associating themselves with any intermediary registered with Sebi, any listed public company or acting directors/ promoters of any public company which intends to raise money from the public till further orders."
The order, pertaining to alleged siphoning off of funds from the company, has been passed against a total of 28 individuals and entities (noticees).
The focus of the Sebi probe was to broadly look into the manner in which loans were dispersed by Reliance Home Finance Ltd (RHFL) during 2018-19 to several borrowing entities.
Sebi noted that the root of the present proceedings can be traced to multiple sources, inter alia, a letter of Price Waterhouse & Co addressed to RHFL intimating their resignation as the statutory auditor of the company; and complaints received by Sebi alleging siphoning off/diversion of funds of RHFL by promoters and management of the company.
There were multiple Fraud Monitoring Returns (FMRs) from banks alleging, among others, that funds borrowed by RHFL from different lenders were partly used towards repayment of loans, the regulator said.
It was also complained that various connected parties and companies with weak financials were used as conduits to siphon off funds from RHFL to entities connected to the promoter company Reliance Capital, the order said.
"It is noted that one individual person Anil Ambani, who controls the company due to his position as a promoter and controlling shareholder by way his direct and indirect shareholding, is seen to be exercising unfettered powers...," Sebi said.
The order noted that the company's Key Managerial Persons (KMPs) like Executive Director and CEO Ravindra Sudhalkar and the CFOs -- Amit Bapna and Pinkesh R Shah -- "instead of bringing such misdeeds to the notice of the Board of Directors/Regulators, are prima facie found to be hand in gloves with Ambani, in siphoning off the borrowed funds of the company to other financially weak promoter group companies which is evident at different stages of approval of those General Purpose Corporate Loans (GPCL) transactions".
The amount of loans disbursed by RHFL under General Purpose Corporate Loans (GPC loans) have increased exponentially from around Rs 900 crore as on March 31, 2018 to around Rs 7,900 crore as on March 31, 2019, the order said.
The noticees include Adhar Project Management and Consultancy Private Ltd, Indian Agri Services Pvt Ltd, Phi Management Solutions Pvt Ltd, Arion Movie Productions Pvt Ltd, Citi Securities and Financial Services Pvt Ltd, Deep Industrial Finance Ltd, Azalia Distribution Pvt Ltd and Vinayak Ventures Pvt Ltd.
Gamesa Investment Management Pvt Ltd, Medybiz Pvt Ltd, Hirma Power Ltd, Tulip Advisors Pvt Ltd, Mohanbir Hi-Tech Build Pvt Ltd, Netizen Engineering Pvt Ltd and Crest Logistics and Engineers Pvt Ltd (now known as Cle Pvt Ltd) are among the noticees.
Other noticees are Reliance Unicorn Enterprises Pvt Ltd, Reliance Exchange next Ltd, Reliance Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, Reliance Broadcast Network Ltd, Reliance Big Entertainment Pvt Ltd and Reliance Capital Ltd.
The regulator noted that the prima facie observations contained in the order are made on the basis of the material available on record and the prima facie findings shall also be considered as a show cause notice.
"The noticees (noticee nos. 1 to 28) are further called upon to show cause as to why inquiry should not be held against them... (for) alleged violations of provisions of Sebi Act, 1992, LODR Regulations and PFUTP Regulations," Sebi said, adding that the noticees can file their replies within 21 days of receiving the order.
They can also indicate whether they desire to avail an opportunity of personal hearing on a date and time to be fixed in that regard.
Sebi also clarified that the restraint imposed on RHFL should not come in the way of any resolution/revival plan approved or to be approved, under any law.
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Delhi LG 'praises' CM Atishi, calls her 'thousand times better than her predecessor' Kejriwal
New Delhi, Nov 22: In a left-handed compliment to Delhi Chief Minister Atishi, Lieutenant Governor V K Saxena on Friday said she is "a thousand times better" than her predecessor Arvind Kejriwal.
At the seventh convocation ceremony of the Indira Gandhi Delhi Technical University for Women here, Saxena said, "I am happy today that Delhi's CM is a woman, and I can confidently say that she is a thousand times better than her predecessor."
While making the comment, he took a glance at Atishi who also addressed the students.
The AAP and BJP have been at loggerheads over a range of issues, including governance and control of bureaucracy. Kejriwal tendered his resignation in September and said he would seek a "certificate of honesty" from the public in light of the corruption charges he faced. Atishi succeeded him as the chief minister.
Last year, Saxena ignored the AAP government's request to allow Atishi, who was then the education minister to hoist the national flag at the state-level Independence Day event.
A row brewed over the issue with the Aam Aadmi Party lashing out at Saxena after the General Administration Department refused to implement Minister Gopal Rai's direction to let Atishi hoist the tricolour in place of former then Chief Minister Arvind Kejriwal who was in the jail in the excise policy scam.
In his speech, Saxena told the students, "As you move ahead, you have four guiding stars. First is your responsibility towards yourself, the second is your responsibility towards your parents and family while the third responsibility is towards the society and nation-building."
"The fourth responsibility is to prove yourself as women who have broken the glass ceiling of gender and stand on par with others in all fields," he said.
Kejriwal had proposed Atishi's name as the chief minister at a meeting of the legislature party and it was unanimously accepted.
When she took charge of the office, Atishi kept an empty chair besides hers for Kejriwal.
Addressing at the event, Atishi reflected on the progress made in the education sector under the AAP government.
"Education is the key to development. Take the example of the US, Canada, or the UK. They provided free education and schooling, and that is why they are developed countries today."
"Ten years ago, when we formed the government here, we saw the same dream. Since then, we have been spending 25 percent of our education budget on improving the sector," she said.
