INSUBCONTINENT EXCLUSIVE:
SEBI on Friday restrained Reliance Home Finance and Anil Ambani from the securities marketNew Delhi: Securities and Exchange Board of India
market for allegedly siphoning off funds from the company.The three other individuals are Amit Bapna, Ravindra Sudhakar and Pinkesh R
Shah.In a 100-page interim order, the regulator also restrained the individuals from "associating themselves with any intermediary
public till further orders".The order, pertaining to alleged siphoning off of funds from the company, has been passed against a total of 28
multiple sources, inter alia, a letter of Price Waterhouse - Co addressed to RHFL intimating their resignation as the statutory auditor of
company.There were multiple fraud monitoring returns (FMRs) from banks alleging, among others, that funds borrowed by RHFL from different
lenders were partly used towards repayment of loans, the regulator said.It was also complained that various connected parties and companies
with weak financials were used as conduits to siphon off funds from RHFL to entities connected to the promoter company Reliance Capital, the
order said."It is noted that one individual person Anil Ambani, who controls the company due to his position as a promoter and controlling
company's Key Managerial Persons (KMPs) like executive director and CEO Ravindra Sudhalkar and the chief finance officers (CFOs) - Amit
Bapna and Pinkesh R Shah - "instead of bringing such misdeeds to the notice of the board of directors or regulators, are prima facie found
to be hand in gloves with Mr Ambani, in siphoning off the borrowed funds of the company to other financially weak promoter group companies
which is evident at different stages of approval of those General Purpose Corporate Loans (GPCL) transactions".The amount of loans disbursed
crore as on March 31, 2019, the order said.The noticees include Adhar Project Management and Consultancy Private Ltd, Indian Agri Services
Pvt Ltd, Phi Management Solutions Pvt Ltd, Arion Movie Productions Pvt Ltd, Citi Securities and Financial Services Pvt Ltd, Deep Industrial
Finance Ltd, Azalia Distribution Pvt Ltd and Vinayak Ventures Pvt Ltd.Gamesa Investment Management Pvt Ltd, Medybiz Pvt Ltd, Hirma Power
Ltd, Tulip Advisors Pvt Ltd, Mohanbir Hi-Tech Build Pvt Ltd, Netizen Engineering Pvt Ltd and Crest Logistics and Engineers Pvt Ltd (now
known as Cle Pvt Ltd) are among the noticees.Other noticees are Reliance Unicorn Enterprises Pvt Ltd, Reliance Exchange next Ltd, Reliance
Commercial Finance Ltd, Reliance Cleangen Ltd, Reliance Business Broadcast News Holdings Ltd, Reliance Broadcast Network Ltd, Reliance Big
Entertainment Pvt Ltd and Reliance Capital Ltd.The regulator noted that the prima facie observations contained in the order are made on the
basis of the material available on record and the prima facie findings shall also be considered as a show cause notice.It however
