sebi:WTM/AN/CFID/CFID_1/30660/2024-25

SEBI · SEBI · Ananth Narayan G., Whole Time Member

This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.

Facts / Headnote

Penalties imposed on Noticees except Noticee Nos. 1 and 5; Noticee Nos. 3-5 restrained from securities market for 5 years; proceedings against Noticee Nos. 26 and 28 to be decided by separate orders; Noticee No. 1 penalized INR 5,00,000 under Section 15HA of SEBI Act.

Provisions invoked

• s. 11B
• s. 11
• s. 15A
• s. 19
• s. 12A
• s. 11(2)
• s. 15H
• s. 21
• s. 11C(5)
• s. 133
• s. 45
• s. 14
• s. 2(51)
• s. 14(1)
• s. 100
• s. 32A
• s. 203
• s. 143(12)
• s. 143
• s. 95

Regulations

• Reg. 3
• Reg. 4
• Reg. 4(1)
• Reg. 4(2)
• Reg. 4(2)(f)
• Reg. 3(b)
• Reg. 19
• Reg. 2(1)(b)
• Reg. 17(8)
• Reg. 26(3)
• Reg. 17(7)
• Reg. 33(2)
• Reg. 3(b)(c)
• Reg. 4(1)(d)
• Reg. 26
• Reg. 4(2)(f)(k)
• Reg. 4(1)(a)(b)

Holding

The Noticees were found to have violated Section 12A(a)-(c) of the SEBI Act and Regulations 3(b), (c), (d) and 4(1) of the PFUTP Regulations by engaging in a fraudulent scheme involving diversion of funds through GPCL loans to Potentially Indirectly Linked Entities. Maximum penalties were imposed on all Noticees except Noticee Nos. 1 and 5, and Noticee Nos. 3-5 were restrained from the securities market for 5 years.

Full text

Final Order in the matter of Reliance Home Finance Limited Page 2 of 222 17 Tulip Advisors Private Limited AADCT0485A 18 Mohanbir Hi-Tech Build Private Limited AAJCM6196R 19 Netizen Engineering Private Limited AABCR7570C 20 Crest Logistics and Engineers Private Limited (Now Known As CLE PRIVATE LIMITED) AACCR7266A 21 Reliance Unicorn Enterprises Private Limited AAACC2436P 22 Reliance Exchange next Limited AABCR7567D 23 Reliance Commercial Finance Limited AABCR6898M 24 Reliance Cleangen Limited AAACR2664L 25 Reliance Business Broadcast News Holdings Limited AABCU0804C 26 Reliance Broadcast Network Limited AADCR1885L 27 Reliance Big Entertainment Private Limited AAFCA6658L 28 Reliance Capital Limited AAACR5054J (The aforesaid entities are hereinafter individually referred to by their respective names/Noticee no. and collectively as “Noticees”, unless the context specifies otherwise)

Final Order in the matter of Reliance Home Finance Limited Page 3 of 222 Contents A. BACKGROUND & INVESTIGATION .................................................................. 4 B. OTHER REPORTS ............................................................................................ 10

Final Order in the matter of Reliance Home Finance Limited Page 4 of 222 GPC Loans written off/Classified as NPA .............................................. 164 GPC Loans turn NPAs/ Written Off ................................................... 164 Façade of Loan repayment ............................................................... 166 Guarantees Furnished by GPCL Borrowers and Onward Borrowers 168 Whether the Noticees can be said to have violated provisions of the PFUTP Regulations? ............................................................................ 175  Whether Noticees 1, 3-5 can be said to have violated the provisions of LODR Regulations? .............................................................................. 180 Non-Disclosure of RHFL Board’s Directions in its Meeting held on February 11, 2019 ................................................................................. 180 Misrepresentation of Financials ............................................................. 181 CEO/ CFO Certificate issued by Noticee Nos. 4 and 5 ......................... 191 Failure of KMPs in discharging their responsibilities ............................. 193  Whether Noticee No. 3 can be said to have made false statement(s) during the investigation thereby making him liable for monetary penalty under Section 15A(a) of the SEBI Act, 1992? ....................................... 195  SUMMARY OF THE CASE AND ROLE OF NOTICEES ...................... 195 

Source: SecMarx — sebi:WTM/AN/CFID/CFID_1/30660/2024-25. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.