New Delhi, Oct 30 (NationPress) The news platform Cobrapost has unveiled a report concerning the alleged misappropriation of Rs. 28,874 crore by the Anil Ambani-led Reliance Group. The investigation claims that the group employed various pass-through entities, known as Special Purpose Vehicles (SPVs), subsidiaries, and shell companies, including offshore entities located in the British Virgin Islands (BVI), Cyprus, Mauritius, the United States, the United Kingdom, and Singapore, to channel funds to Reliance Innoventure, the primary holding entity of the group.

Allegations suggest this was achieved through loans granted to subsidiaries, alongside the issuance of debentures and preference shares. The funds were reportedly siphoned off using SPVs or shell entities, followed by the writing off of the loans.

According to the report, the ADA Group companies are believed to have wrongfully diverted Rs 28,874 crore, while approximately US$1.53 billion was funneled into India through questionable transactions. Most of the offshore funding that reached the ADA Group entities was reportedly sourced from external commercial borrowings.

Cobrapost has highlighted the acquisition of a luxury yacht for $20 million in 2008, alleging it was purchased by rerouting funds from Reliance Communication to Reliance Transport & Travels Pvt. Ltd., a subsidiary of the ADA Group. This diversion was allegedly obscured through multiple layers to disguise the flow of funds.

“Numerous instances of fund diversion have been cataloged in the Cobrapost investigation. The implicated companies include Reliance Communication, Reliance Capital, Reliance Home Finance Ltd., Reliance Commercial Finance Ltd., and Reliance Corporate Advisory Services Ltd. We have identified a plethora of subsidiaries and shell entities engaged in this fraudulent activity,” states the Cobrapost report.

It is alleged that Reliance Home Finance diverted around Rs 7,965 crore to 49 related entities, with these funds ultimately reaching 14 ADA-controlled entities. Similarly, Reliance Commercial Finance is accused of channeling Rs 4,979.9 crore through 27 companies for promoter interests. Moreover, Reliance Corporate Advisory Services allegedly diverted Rs 1,400 crore via intercorporate loans at zero interest, according to the report.

In response, the Reliance ADA group has dismissed the Cobrapost report as a “malicious and agenda-driven campaign” and claimed that the media outlet’s “so-called exposé” is a calculated attempt to tarnish the group’s reputation and mislead stakeholders. The Anil Ambani-led company contends that “Cobrapost has been dormant since 2019, and its revival is fully funded by entities with direct commercial interest in acquiring Reliance Group assets.”