India Regulator Rejects Anil Ambani Settlement Request

By the Editorial Team · Sunday, June 28, 2026

India’s securities regulator, SEBI, has rejected settlement requests from Anil Ambani and his group over allegations of misusing nearly $700 million by funneling company funds to entities linked to Ambani. The decision, influenced by ongoing investigations and marking a second refusal to settle, could lead to formal charges, fines, and restrictions, complicating Reliance Infrastructure’s planned public fundraising.

India’s financial markets regulator has rejected settlement requests from industrialist Anil Ambani and his corporate group concerning allegations of misuse of nearly $700 million in company funds. The Securities and Exchange Board of India (SEBI) declined the applications last week, according to regulatory documents reviewed by Reuters.

The case centers on accusations that Ambani and Reliance Infrastructure improperly routed 65.26 billion rupees (approximately $691 million) to entities connected to Ambani, the controlling shareholder. SEBI first raised concerns in September that these transactions represented a "mis-utilization of company funds," potentially benefiting Ambani personally rather than serving corporate or public shareholder interests.

Anil Ambani, the younger brother of billionaire Mukesh Ambani, has faced increasing regulatory scrutiny over the past 18 months. Several executives within his business group have been arrested on fraud charges, and some of Ambani’s personal properties have been frozen. Those involved have denied any wrongdoing, and the legal proceedings are ongoing.

In response to the settlement rejection, a spokesperson for the Anil Ambani group stated that the allegations were categorically denied and described the matters as sub judice, emphasizing that the group would continue to defend its position as advised by legal counsel. SEBI did not provide any comment on the matter.

This is the second time SEBI has refused Ambani’s attempt to settle regulatory complaints. Last year, the regulator also rejected his request to settle cases related to investments in Yes Bank. Under SEBI’s settlement mechanism, companies can resolve allegations by paying a penalty without admitting guilt. A rejection typically leads to the issuance of a detailed public order outlining the regulator's charges, which can include fines or restrictions on accessing capital markets. Companies can appeal such orders in court.

The documents reveal that SEBI’s decision was influenced by concurrently ongoing investigations by other Indian enforcement agencies, including those probing financial crimes and fraud. Reliance Infrastructure is currently preparing to raise funds from public markets, having received board approval to issue securities worth up to 30 billion rupees.

The company had previously acknowledged financial exposure of 65.26 billion rupees to CLE Private Ltd, an engineering contractor described as an independent entity. However, SEBI’s findings suggest a much larger flow of funds, totaling 176.7 billion rupees ($1.9 billion), was channeled from Reliance Infrastructure to CLE. Furthermore, CLE reportedly reinvested at least 112 billion rupees into firms linked to the Ambani-led Reliance ADA Group over a ten-year period ending in 2024.

SEBI characterized CLE not as an independent firm but effectively as part of the Reliance ADA Group, asserting that Ambani and several officials indirectly controlled it. Attempts to obtain comment from CLE were not successful.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.