Anil Ambani's son Jai Anmol Ambani was fined by markets regulator Sebi as he failed to exercise due diligence while approving general-purpose corporate loans in the Reliance Home Finance matter. Sebi imposed a fine of Rs 1 crore on Jai Anmol and a separate fine of Rs 15 lakh was slapped on Krishnan Gopalakrishnan, the former Chief Risk Officer of Reliance Home Finance, for approving the loans.
In its order issued on Monday, Sebi pointed out that Jai Anmol, a member of the board of Reliance Home Finance, sanctioned general-purpose corporate loans (GPCL loans) despite clear instructions from the board of directors to refrain from doing so.
Anmol Ambani approved a loan of Rs 20 crore to Accura Productions Private Limited on February 14, 2019, contradicting the directive given by the board of directors during their meeting on February 11, 2019, to abstain from approving any more GPCL loans.
"The noticee 1 (Anmol Ambani), as non-executive director of the company, has taken the company in his own direction and has gone overboard in his role as director. Noticee 1 in doing so, gives a hint of being motivated and definitely not in the interests of the shareholders and has not acted with due care and diligence, and has not maintained high ethical standards," Sebi said.
Sebi has asked both to pay the amount within 45 days.
Sebi noted Anmol, who was on the board of Reliance Capital and Reliance Home Finance and also a director in the other Reliance ADAG group companies where the funds were onward lent, did not exercise reasonable due diligence with respect to the entire GPCL lending and the onward lending by these GPCL entities to other Reliance ADAG group companies, including Reliance Capital.
The regulator noted that Gopalakrishnan had also approved various GPCL loans and was aware of the substantial deviations which were recorded in the credit approval memos of various loans which he had recommended while being the CRO of the company.
While being a part of the senior management of Reliance Housing Finance, Gopalakrishnan should have followed due process, complied with the code of conduct of the company, and acted with due care and diligence in performing his duties and acted in good faith, in the interest of all stakeholders of the company, Sebi said.
Both Anmol Ambani and Gopalakrishnan violated the provisions of Sebi's LODR (Listing Obligations and Disclosure Requirement) rules.
The order came after Sebi, in August, barred Anil Ambani and 24 others from the securities market for five years in a case pertaining to the diversion of Reliance Home Finance Ltd's funds. Also, a fine of Rs 25 crore was levied on him.