Anil Ambani-linked Reliance Infrastructure and Reliance Power have received show cause notices from the Securities and Exchange Board of India (SEBI) regarding alleged violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and the SEBI Act, 1992.
“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.
Reliance Infrastructure stated that 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.
According to the company, in February, Reliance Infra settled a dispute with CLE Pvt Ltd for an agreement of Rs 6,503 crore.
“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,” Reliance Infrastructure said.
Reliance Power, also received a show cause notice in connection with Reliance Infrastructure’s exposure to CLE Private Limited, but the company clarified that it has “zero exposure” to the entity.
“The Company has zero exposure to CLE Private Limited. The company shall take appropriate steps in the matter, as legally advised,” Reliance Power said in its BSE filing.
It may be recalled that in July, the Enforcement Directorate (ED) raided more than 35 premises and searched over 50 companies in New Delhi and Mumbai linked to the Anil Ambani-led Reliance Group. The investigation was related to the alleged illegal diversion of loans.
Anil Ambani-linked Reliance Infrastructure 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 February 9, 2025.