January 13, 2020

Forensic Audit Found No Fraud: Reliance Home Finance

[ By Bobby Anthony ]


The Anil Ambani-owned Reliance Home Finance, which is seeking debt resolution, has issued an official statement that an independent forensic audit mandated by its lenders, found no fraud, embezzlement or diversion of funds.

The audit made “no adverse findings” regarding the quantum or end use of lending, according to the official statement.

In August 2019, lenders had appointed Grant Thornton as forensic auditor, as required under Reserve Bank of India (RBI) norms on ‘Prudential Framework for Resolution of Stressed Assets Under Change of Control and Management’.

Incidentally, the Anil Ambani-owned Reliance Commercial Finance has also made an almost identical announcement.

Reliance Home Finance is part of the Anil Ambani Group focused on affordable housing finance, high value home loans, loan against property, construction financing as well as property services.

On January 3, Reliance Capital had informed stock exchanges that as directed by the lead bank to an inter-creditor agreement which was being worked on, amounts due and payable by Reliance Home Finance in respect of unsecured NCDs were delayed.

After Reliance Home finance defaulted on its bond repayments, bondholders considered legal action including initiation of recovery proceedings through the National Company Law Tribunal (NCLT).

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