Mumbai Police are probing allegations that Reliance Home Finance diverted bank funds after securing loans using misleading financial documents, according to a complaint filed by Axis Bank.
Mumbai Police have registered a fraud case against a former Reliance Home Finance director following a complaint by Axis Bank. | LinkedIn
The Mumbai Police have registered a case against a former director of Reliance Home Finance Limited (RHFL) over allegations of cheating Axis Bank of nearly Rs 150 crore through forged documents and diversion of funds, officials said on Tuesday.
The case, lodged at Cuffe Parade Police Station on the complaint of Axis Bank officials, comes at a time when companies linked to industrialist Anil Ambani’s Reliance ADA Group are facing increasing scrutiny from investigative agencies in multiple financial fraud cases. Investigators are now examining how the loans were secured and where the money was eventually routed.
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According to police officials, RHFL allegedly presented a stronger financial position to the bank while applying for loans. During the process, forged and misleading documents were allegedly submitted to obtain financial assistance from Axis Bank.
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Investigators have also alleged that the loan amount was not used for the stated purpose. Instead, the funds were allegedly diverted and invested in other companies.
“Axis Bank officials told the police that Reliance Home Finance defrauded Axis Bank of approximately Rs 150 crore by using false documents,” Mumbai Police said.
Officials said the FIR names a former director of Reliance Home Finance Limited in connection with the alleged financial irregularities. The complaint was filed after the bank flagged discrepancies linked to the loan process and fund utilisation.
Police sources said investigators are scrutinising financial records and documents submitted during the sanctioning of the loan.
The latest case adds to a series of legal and financial challenges surrounding entities associated with the Reliance ADA Group.
Earlier this month, the Central Bureau of Investigation carried out searches at seven locations in Mumbai, Gurugram and Bengaluru in a separate case linked to Reliance Communications.
The searches covered residential premises of former CEOs, CFOs and directors who were associated with the company between 2015 and 2017. The CBI said incriminating documents were recovered during the operation.
The agency has registered seven cases against companies linked to the Reliance Group based on complaints from public sector banks and LIC over alleged fraud exceeding Rs 27,000 crore.
In April, two senior executives of Reliance Communications, D Vishwanath and Anil Kalya, were arrested in connection with the ongoing probe. Both are currently in judicial custody. The matter is also being monitored by the Supreme Court.
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