Mumbai : Mumbai Police have registered a case against a former director of Reliance Home Finance Limited (RHFL) in connection with an alleged fraud of nearly Rs 150 crore involving Axis Bank, officials said on Tuesday.
According to Mumbai Police, the case was registered at the Cuffe Parade Police Station following a complaint filed by Axis Bank officials, who alleged that Reliance Home Finance obtained loans using forged and misleading documents.
Police said the company allegedly projected its financial position as strong and stable in order to secure loans from Axis Bank. However, officials claimed that false documents were used during the process to obtain financial assistance.
Investigators further alleged that instead of utilising the loan amount for its intended purpose, Reliance Home Finance diverted the funds to invest in other companies.
"Axis Bank officials told the police that Reliance Home Finance defrauded Axis Bank of approximately Rs 150 crore by using false documents," Mumbai Police said. The development adds to the mounting legal troubles surrounding industrialist Anil Ambani and companies linked to the Reliance ADA Group.
Officials noted that Axis Bank had previously initiated legal proceedings against entities associated with the Reliance Group in separate matters. Earlier this month, the Central Bureau of Investigation conducted searches at seven premises across Mumbai, Gurugram and Bengaluru in connection with a separate case involving Reliance Communications, another company under the Anil Ambani-led Reliance ADA Group.
The searches targeted residential premises of former CEOs, CFOs and directors who served between 2015 and 2017. According to the CBI, incriminating documents were seized during the searches. The agency has registered seven cases against companies linked to the Reliance Group based on complaints from public sector banks and LIC over alleged fraud involving more than Rs 27,000 crore.
Two senior executives of Reliance Communications, D Vishwanath and Anil Kalya, were arrested in April in connection with the ongoing investigation and are currently in judicial custody. The investigation is being monitored by the Supreme Court.