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SEBI Rejects Anil Ambani’s Plea in Yes Bank Loan Fraud Case, Faces ₹18.28B Fine
SEBI: The Securities and Exchange Board of India (SEBI) said in its investigation that this investment was made in exchange for loans taken from Yes Bank to other companies of the Anil Ambani Group. Rejecting Ambani's plea to settle the matter without admitting guilt, the regulator said in its order on July 7, the loan fraud in Yes Bank caused a loss of Rs 18.28 billion to investors and it had a huge impact on the market.
Market regulator SEBI rejected Anil Ambani's plea to settle the case related to loan fraud at Yes Bank. Additionally, Ambani may face a fine of at least Rs 18.28 billion ($208.4 million). The Enforcement Directorate (ED) investigation into the company will also continue.
Ambani's company, Reliance Mutual Fund, invested Rs 21.5 billion ($245.3 million) in Yes Bank's additional tier-1 bonds between 2016 and 19. This amount was written off in 2020 when the bank was declared bankrupt. Meanwhile, Reliance Mutual Fund was sold to Nippon Life Insurance in 2019, prior to this case.
SEBI stated that, in its investigation, this investment was made in exchange for loans taken from Yes Bank by other companies in the Anil Ambani Group. Rejecting Ambani's arguments to settle the matter without admitting fault, the regulator said in its order on July 7 that investors lost Rs 18.28 billion due to loan fraud in Yes Bank, which had a broad impact on the market.
Two Amar Ujala sources reported that SEBI also shared the investigation findings with the Enforcement Directorate, which had conducted searches last month at about 35 locations related to companies in the Anil Ambani Group.
