The Securities and Exchange Board of India (SEBI) has issued demand notices to five entities totalling INR1.3 billion (USD15.4 million) in the fraud case involving the divergence of funds from publicly listed Reliance Home Finance Limited.
Each of these entities – Citi Securities and Financial Services, Deep Industrial Finance, Vinayak Ventures, Gamesa Investment Management and Netizen Engineering – have been issued demand notices for payment of INR260 million to the SEBI after failing to pay the fines in August.
The recovery amount against each of these entities includes a penalty of INR250 million and interest of 1% per month from August to November 2024.
If these companies fail to pay the recovery amount, the authorities have warned of appropriate action under the law, including the attachment and sale of movable and immovable property, bank accounts, arrest and detention in prison, and appointing a receiver for the management of movable and immovable property.
In August 2024, the SEBI had banned Reliance Group chairman Anil Ambani from trading securities for five years and, in October, imposed a INR10 million fine on his son Jai Anmol Ambani, a non-executive director of Reliance Home Finance.
