Investigative news organisation Cobrapost has alleged that the Reliance Anil Dhirubhai Ambani Group (Reliance ADAG) committed a massive banking fraud amounting to ₹28,874 crore, involving diversion of funds from banks and investors through shell companies and offshore entities.
At a press conference at the Press Club of India, Cobrapost editor Aniruddha Bahal said the findings were based on a forensic analysis of official regulatory filings and court documents. “What we found is not just mismanagement but clear fraud,” Bahal said. “Funds raised from IPOs, bonds and public sector banks were allegedly diverted to shell companies and routed back to promoter-controlled entities.”
The report, published under Bahal’s name, claims that nine ADAG companies had unpaid loans totaling ₹1.78 lakh crore when they went under insolvency proceedings, while investors collectively lost ₹1.59 lakh crore in market value since 2008 — together accounting for a public money loss of ₹3.38 lakh crore.
Alleged Modus Operandi: Borrow, Divert, Default
Cobrapost’s investigation details a pattern of alleged financial manipulation. It claims that Reliance ADAG raised money from both public and private sector banks, as well as via IPOs and bonds, before diverting funds through shell entities based in India and abroad.
According to Bahal, the fraud was “deliberate and systematic,” involving fake transactions, circular fund transfers, and offshore routing to benefit the promoter group. The funds, he said, were eventually “brought back” into Anil Ambani’s holding companies.
The report cites data from multiple official sources — including the Ministry of Corporate Affairs (MCA), SEBI, Reserve Bank of India (RBI), and National Company Law Tribunal (NCLT) — alongside foreign filings and public court records, to substantiate its claims.
“This was not a case of corporate misjudgment,” Bahal said. “It was a planned siphoning of public and investor money that has gone unchecked for nearly two decades.”
Public Figures Demand Accountability
The press conference was attended by senior journalist Paranjoy Guha Thakurta, Supreme Court lawyer Prashant Bhushan, and Newslaundry co-founder Abhinandan Sekhri, among others.
Bhushan strongly criticised the government and investigative agencies for “turning a blind eye” to what he called “the systematic looting of public money.”
“Anil Ambani has siphoned thousands of crores and yet faces no action from the CBI or ED,” Bhushan said. “Why is he being protected? What leverage does he hold over those in power?”
Guha Thakurta, meanwhile, condemned what he described as the growing intimidation of investigative journalists through defamation suits. “If these allegations are false, investigate and prove them wrong. But branding journalists as blackmailers for exposing wrongdoing is undemocratic,” he said.
Bahal also announced that Cobrapost would be launching a new investigative series titled “Lootwalas”, focusing on major Indian business houses allegedly involved in corporate fraud.
Reliance ADAG Rejects Allegations, Calls Report “Motivated”
In a swift response, Reliance ADAG dismissed the Cobrapost allegations as “malicious, baseless and motivated,” claiming that the report had been funded by corporate rivals seeking to manipulate stock prices and acquire group assets cheaply.
The group stated that all the information cited by Cobrapost is publicly available and has already been reviewed by investigative agencies such as the CBI, ED, and SEBI. Reliance ADAG also claimed it had filed a complaint with SEBI to investigate “suspicious trading activity” around the time of the Cobrapost press event.
“Cobrapost is recycling old and publicly available material to create sensational headlines,” the group said in a statement. “All our business activities have been conducted in compliance with law and under the supervision of regulators.”
Broader Implications: Corporate Governance and Oversight
The allegations reignite long-standing questions about regulatory oversight, banking due diligence, and corporate governance in India’s financial sector.
Experts have noted that while ADAG’s financial troubles are well documented — with several group firms, including Reliance Communications, Reliance Power, and Reliance Infrastructure, under insolvency — this is the first time an investigative outlet has claimed structured evidence of deliberate diversion of funds.
Prashant Bhushan and others demanded that agencies like the ED, SEBI, and RBI launch an independent probe into the transactions cited by Cobrapost.
As the controversy deepens, the spotlight once again turns to the intersection of big business, political patronage, and regulatory inertia — a nexus critics say has allowed billion-dollar financial irregularities to go unchecked in India.
