CHENNAI: The Ministry of Corporate Affairs (MCA) has initiated an investigation into Anil Ambani-led Reliance Group over alleged fund diversion and financial irregularities, adding to the mounting troubles for the debt-laden conglomerate. The probe will examine transactions across multiple group entities to determine whether funds were siphoned off or misused in violation of corporate governance norms, India Today reported on Wednesday quoting official sources.
The inquiry follows preliminary findings suggesting potential lapses in financial disclosures and related-party transactions within certain Reliance Group companies. The MCA is reported to have sought detailed financial statements, auditor reports, and board resolutions from key subsidiaries to assess compliance with the Companies Act provisions.
This development comes at a time when several of the group’s firms, including Reliance Capital and Reliance Communications, are already under insolvency proceedings. The fresh probe intensifies regulatory scrutiny over the group’s financial practices and could have wider implications for its ongoing resolution processes.
Anil Ambani-led Reliance Group, once among India’s most prominent business conglomerates, has faced a steep decline over the past decade following mounting debt and failed diversification efforts. Reliance Communications was one of the first major telecom operators to collapse under the weight of competition and debt, while Reliance Capital was admitted into insolvency in 2021 over non-payment to creditors. The group’s overall debt exposure has reportedly crossed several thousand crores, and its assets are currently being auctioned under various insolvency tribunals.
While the Group has not yet issued an official statement, sources close to the company maintain that it has complied with all statutory requirements and will cooperate fully with authorities. Industry observers note that the probe signals the government’s tougher stance on corporate transparency and accountability, especially in cases involving large business houses with complex financial structures.
