Anil Ambani group companies Reliance Power Ltd. and Reliance Infrastructure Ltd. received a show cause notices from the Securities and Exchange Board of India for alleged fraudulent practices.
“The company has received a Show Cause Notice from SEBI in relation to Reliance Infrastructure Limited’s exposure in CLE Private Limited, for alleged violation of SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003,” Reliance Power said in a stock exchange filing late Monday.
Reliance Infrastructure said the notice came eight months after the dispute in relation to the company’s exposure with CLE Pvt. Ltd. was settled through mediation conducted by a retired Supreme Court judge in the Bombay High Court. In February, Reliance Infra settled a dispute with CPL — formerly Crest Logistics and Engineers Pvt. Ltd. — for an agreement of Rs 6,503 crore.
The company has initiated pre-institution mediation proceedings against CLE in August 2023.
“The settlement with CLE Private Limited has already been concluded and stands fully implemented in terms of the Mediation Act, 2023. The Company shall take appropriate steps in the matter, as legally advised,” the company said its exchange filing.
In July, the Enforcement Directorate raided more than 35 premises and searched over 50 companies in New Delhi and Mumbai linked to the Reliance Anil Ambani Group. The investigation was related to the alleged illegal diversion of loans.
Anil Ambani-promoted Reliance Infra has denied allegations of fund diversion. The company said it had a net exposure of Rs 6,500 crore, which was duly disclosed in its financial statements over the past four years, and that it had publicly disclosed the matter on Feb. 9, 2025.
