India’s federal investigating agency announced on Saturday that it has initiated a criminal case against industrialist Anil Ambani and his company, Reliance Communications, following a complaint by India’s largest bank regarding alleged fraud.
State Bank of India accused Anil Ambani, the younger brother of billionaire Mukesh Ambani, and Reliance Communications of defrauding the bank, resulting in a loss of 30 billion Indian rupees ($344 million).
India’s Central Bureau of Investigation conducted search operations in Mumbai at Anil Ambani’s residence and the offices of the now insolvent Reliance Communications, according to a press statement issued by the agency.
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The agency stated that Anil Ambani and his company misused and diverted bank funds for purposes other than those agreed upon.
A spokesperson for Ambani and Reliance Communications did not immediately respond to a request for comment.
Last month, India’s Enforcement Directorate also searched 35 locations linked to Reliance Group as part of an investigation into alleged money laundering and misappropriation of public funds, a government source informed Reuters.
Reliance Group did not respond to a request for comment at that time, but a source within the group denied the allegations.
($1 = 87.3260 Indian rupees)
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