India’s federal investigating agency announced on Saturday that it has opened a criminal case against industrialist Anil Ambani and his company Reliance Communications Ltd. following a complaint of alleged fraud from the country’s largest bank.
State Bank of India (SBI) claimed that Anil Ambani, the younger brother of billionaire Mukesh Ambani, and Reliance Communications defrauded the bank, leading to losses of 30 billion Indian rupees ($344 million).
The Central Bureau of Investigation (CBI) conducted search operations in Mumbai at Anil Ambani’s residence and the offices of the now-insolvent Reliance Communications, the agency said in a press statement.
A spokesperson for Ambani told Reuters that the searches at his home concluded on Saturday afternoon. “Mr. Ambani strongly denies all allegations and charges, and will duly defend himself,” the spokesperson said.
The agency alleges that Anil Ambani and his company misused and diverted bank funds for purposes other than what had been agreed upon. An email inquiry to SBI for comment was not immediately answered.
This development follows an earlier investigation by India’s Enforcement Directorate, which last month searched 35 locations connected to Reliance Group as part of an inquiry into alleged money laundering and the siphoning of public funds. At that time, Reliance Group did not respond to a request for comment, but a source within the group denied the allegations.
