According to Cobrapost, an investigative news website, Anil Ambani’s Reliance Group diverted more than Rs 41,921 crore since 2006 as part of a massive financial scam. Reliance Communications, Reliance Capital, Reliance Home Finance, Reliance Commercial Finance, and Reliance Corporate Advisory Services are among the listed group entities from which approximately Rs 28,874 crore was embezzled, according to the report. Through a convoluted web of subsidiaries and shell corporations, the embezzled funds were reportedly transferred to promoter-affiliated businesses.
The investigation also revealed that an additional USD 1.535 billion (around Rs 13,047 crore) was funneled back into India through offshore entities based in Singapore, Mauritius, Cyprus, the British Virgin Islands, the US, and the UK. One transaction of note involved a Singapore-based firm, Emerging Market Investments & Trading Pte (EMITS), which received USD 750 million from NexGen Capital and later transferred the funds to Reliance Innoventures before being dissolved. This transaction is suspected to be an instance of money laundering. The report pointed to violations of several laws including the Companies Act, FEMA, PMLA, SEBI Act, and Income Tax Act, basing its claims on official filings from government bodies like the Ministry of Corporate Affairs, SEBI, NCLT, and RBI .
Use of Offshore Networks and Luxurious Expenditure:
Cobrapost’s probe highlighted the elaborate use of dozens of pass-through entities, special purpose vehicles (SPVs), and offshore companies to divert funds. Many of these debts were later written off, leading key listed companies under the group into severe financial distress. The total estimated diversion, combining domestic and foreign transactions, allegedly exceeds Rs 41,921 crore. Furthermore, the report pointed to possible misuse of funds for personal luxury, such as a $20 million yacht reportedly bought by Anil Ambani in 2008 using group companies .
Reliance Group Denies Allegations as Malicious Campaign:
In response, the Reliance Group strongly denied the allegations, dismissing the Cobrapost report as a recycled, agenda-driven attack aimed at destabilizing the company’s stock prices and reputation. The group claimed that Cobrapost is a “dead platform resurrected as a corporate hit job” with no journalistic credibility and accused it of spreading disinformation, calumny, and character assassination. The group also stressed that the information cited in the report is old and has already been examined by multiple government agencies including CBI, ED, and SEBI. They viewed the report as an organized attempt to prejudice a fair investigation .
The group suggested that rival corporates were behind the campaign, aiming to acquire Reliance Group assets such as Delhi’s BSES power distribution company, Mumbai Metro, and the Rosa power project by manipulating stock prices. Additionally, Reliance Infrastructure Ltd and Reliance Power Ltd have filed complaints with SEBI, seeking probes into irregular trading patterns in their shares following the report’s release.
Implications for Corporate Governance and Investor Confidence:
Within India’s Reliance Group and possibly the larger business sector, the Cobrapost claims have sparked grave worries about investor confidence, corporate governance, and transparency. The dangers of intricate financial arrangements using shell corporations and offshore entities are sharply brought home by this case. It raises important concerns regarding the effectiveness of supervision procedures in preventing and identifying such pervasive financial irregularities for stakeholders, investors, and regulators. Stricter enforcement and demands for increased accountability within the business ecosystem may result from the current developments.
