The Central Bureau of Investigation has registered a fresh case against Reliance Capital Limited, industrialist Anil Ambani and others over an alleged ₹2,684.57 crore loss suffered by the Life Insurance Corporation of India.
The case is based on a written complaint from LIC. The insurer has alleged that money it invested in Reliance Capital through corporate debt instruments was later diverted or misused. Ambani has denied any wrongdoing.
The FIR also names former Reliance ADA Group managing director Satish Seth, unidentified public servants and other persons whose roles are now under investigation.
Proposal for Conducting Cyber Crisis Drill, Tabletop Exercise (TTEx) & CCMP Readiness Exercise
LIC invested ₹3,900 crore over six years
According to the CBI, LIC subscribed to five non-convertible debentures issued by Reliance Capital between April 12, 2012 and March 9, 2018.
The total investment was ₹3,900 crore. The money was raised for general corporate purposes, funding requirements and refinancing existing debt, according to the agency’s account of LIC’s complaint.
LIC has alleged that it was induced to make these investments through misrepresentation. It further claims that the funds were subsequently diverted, leading to a wrongful loss of ₹2,684.57 crore.
The allegations include criminal conspiracy, cheating, criminal breach of trust, criminal misconduct, diversion or misappropriation of funds and falsification of accounts.
These remain allegations at this stage. The filing of an FIR begins a criminal investigation and does not by itself establish guilt.
What non-convertible debentures actually are
Non-convertible debentures, or NCDs, are a way for companies to borrow money from investors.
Instead of taking a conventional bank loan, a company issues debt securities and promises to pay investors interest before returning the principal amount. Unlike some convertible securities, NCDs normally cannot be converted into shares of the company.
Large institutional investors such as insurance companies, mutual funds and pension funds may buy such instruments as part of their investment portfolios.
In this case, the central issue is not simply that LIC bought Reliance Capital’s debt. Investigators will examine what representations were allegedly made before those investments and where the money ultimately went after it entered the company.
The CBI said its investigation will trace the end-use of the invested funds and examine the roles of private individuals as well as public servants.
Ambani denies wrongdoing as wider probes continue
A spokesperson for Anil Ambani said the FIR concerns Reliance Capital and stressed that Ambani had served as a non-executive director and chairman of its board.
According to the statement, he held that role from 2005 until November 2021, when the Reserve Bank of India superseded Reliance Capital’s board and appointed an administrator.
The spokesperson said Ambani denies any wrongdoing and reserves his legal rights.
The latest FIR adds to several investigations concerning companies linked to the Reliance ADA Group.
The CBI said it had earlier registered eight FIRs involving Reliance Communications, Reliance Capital, Reliance Home Finance, Reliance Commercial Finance and Reliance Telecom following complaints from public-sector banks, the Employees’ Provident Fund Organisation and LIC.
According to the agency, six chargesheets have been filed and seven accused persons arrested across these cases. The broader investigations are being monitored by the Supreme Court.
One earlier LIC-related case, already reported by The420.in, involved Reliance Communications and allegations of a separate ₹3,750 crore wrongful loss. That investigation concerned LIC’s subscription to RCom debentures and allegations linked to the company’s financial position and use of borrowed funds.
Another CBI case registered in 2025 arose from a State Bank of India complaint alleging a ₹2,929.05 crore wrongful loss linked to Reliance Communications. Ambani disputed wrongdoing in that matter as well, saying he was a non-executive director and not involved in daily management.
The new Reliance Capital investigation will now focus on whether LIC was misled before making the investments and whether any part of the ₹3,900 crore raised through the debentures was diverted contrary to its stated purpose.
What this means for you: An FIR involving a large corporate borrower does not automatically mean investor money has been permanently lost or that criminal liability is established. For retail investors, the case is another reminder to examine credit ratings, issuer finances and concentration risk before investing in corporate debt.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
