FinanceFraud – Mumbai Police Probe Alleged Rs 150 Crore Axis Bank Scam
FinanceFraud – Mumbai Police have launched an investigation into an alleged financial fraud case involving Reliance Home Finance Limited (RHFL) after Axis Bank accused the company of securing loans through misleading documentation. Officials said the alleged fraud amount is close to Rs 150 crore, and a case has now been registered against a former director of the company.
Complaint Filed by Axis Bank
According to police officials, the case was registered at Cuffe Parade Police Station in Mumbai after representatives of Axis Bank submitted a formal complaint. The bank alleged that Reliance Home Finance obtained financial assistance by presenting forged and inaccurate records related to the company’s financial condition.
Investigators stated that the company allegedly portrayed its financial health as stable and financially secure while applying for loans. However, authorities suspect that several documents submitted during the approval process contained false information intended to influence the bank’s lending decision.
Allegations of Diversion of Loan Funds
Police officials further claimed that the borrowed funds were not entirely used for the purposes mentioned during the loan application process. Instead, investigators suspect that a portion of the money was diverted toward investments in other companies and business entities.
In its complaint, Axis Bank informed police that the institution suffered losses of nearly Rs 150 crore due to the alleged use of fabricated documents and misrepresentation by the borrower company. The investigation is currently focused on examining financial records, loan approvals, and the movement of funds linked to the transactions.
Legal Challenges Continue for Reliance ADA Group
The latest development adds to the growing list of legal and financial investigations linked to businesses associated with industrialist Anil Ambani and the Reliance ADA Group. Authorities noted that several cases involving companies connected to the group have surfaced in recent years over allegations related to financial irregularities and unpaid loans.
Officials also confirmed that Axis Bank had earlier pursued legal action in separate matters involving entities linked to the broader Reliance Group. Those proceedings were related to different financial disputes and recovery claims.
CBI Searches in Separate Reliance Communications Case
Earlier this month, the Central Bureau of Investigation (CBI) carried out searches at multiple locations in Mumbai, Gurugram, and Bengaluru in connection with another investigation involving Reliance Communications, a separate company under the Reliance ADA Group umbrella.
The searches were conducted at seven premises linked to former senior executives, including chief executive officers, chief financial officers, and directors who served between 2015 and 2017. During the operation, investigators reportedly recovered documents and records considered important for the ongoing inquiry.
Multiple Cases Under Investigation
The CBI has already registered several cases against companies associated with the Reliance Group following complaints from public sector banks and the Life Insurance Corporation of India (LIC). Investigating agencies alleged that the combined value of the suspected fraud cases exceeds Rs 27,000 crore.
Authorities have been examining financial transactions, loan sanction procedures, and the role of company officials in the alleged irregularities. The investigations involve coordination between financial institutions and law enforcement agencies to determine whether banking norms and regulations were violated.
Senior Executives Arrested Earlier
In April, two senior Reliance Communications executives, identified as D Vishwanath and Anil Kalya, were arrested as part of the ongoing investigation. Officials said both individuals are currently in judicial custody while inquiries continue.
The broader investigation linked to the alleged financial misconduct is being monitored by the Supreme Court, highlighting the significance and scale of the case. Authorities have indicated that further action may follow depending on the outcome of the ongoing probe and examination of evidence collected during searches and financial audits.