SEBI Denies Settlement in Anil Ambani’s ₹6,526 Crore Case
The Securities and Exchange Board of India (SEBI) has turned down the settlement applications submitted by Reliance Infrastructure Limited and its promoter, Anil Ambani, in a high-profile case involving the alleged diversion of funds amounting to ₹6,526 crore. This decision propels the matter towards a full adjudicatory process overseen by the market regulator.
As reported by Reuters, SEBI has refused the requests under its settlement mechanism, which sought to conclude the proceedings related to the alleged rerouting of ₹6,526 crore from Reliance Infrastructure to entities connected to the controlling shareholder. This was reportedly done through the contractor CLE.
SEBI has characterized these transactions as a “mis-utilization of company funds” and is actively pursuing a show-cause notice issued in 2025. This notice demands the restoration of the funds to Reliance Infrastructure, along with interest accrued since 2018.
Under the SEBI Act, combined with the Settlement Proceedings Regulations, the regulator’s settlement framework allows for the compounding of proceedings without an admission of guilt. However, SEBI retains the authority to deny an application, especially in cases where the alleged misconduct could have a broad market impact or involves serious fraud-like features.
In this scenario, SEBI has cited the gravity of the alleged fund diversion and the involvement of other investigative bodies as primary reasons for rejecting a consensual resolution at this juncture.
More Read
The case revolves around Reliance Infrastructure Limited’s substantial financial exposure of ₹6,526 crore to the engineering contractor, CLE Pvt Ltd. SEBI alleges that Reliance Infrastructure diverted much larger amounts to CLE over several years. In turn, CLE reportedly funneled significant sums into companies linked to the Anil Ambani-led Reliance ADA Group.
Additionally, SEBI has dismissed a separate settlement request from Anil Ambani concerning alleged irregularities in investments in Yes Bank, also in 2025.
