sebi:WTM/SM/CFID/57/2021-22
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Facts / Headnote
Interim directions issued effective immediately until further orders; noticees called to show cause within 21 days why further directions including recovery of remuneration and penalty should not be issued, with opportunity of personal hearing.
Provisions invoked
- s. 11
- s. 15A
- s. 19
- s. 12A
- s. 21
- s. 15H
- s. 133
- s. 134
- s. 143
Regulations
- Reg. 3
- Reg. 17
- Reg. 4(2)(f)
- Reg. 4
- Reg. 26
- Reg. 4(1)(a)(b)
Holding
SEBI prima facie found diversion/siphoning of RHFL funds via General Purpose Corporate Loans to promoter-linked conduits and issued interim restraints while calling upon noticees to show cause why further directions including recovery of remuneration and penalty should not be imposed.
Full text
Interim Order cum show cause notice in the matter of Reliance Home Finance Limited Page 1 of 100 WTM/SM/CFID /57/2021-22
Interim Order cum show cause notice in the matter of Reliance Home Finance Limited Page 2 of 100 12. Azalia Distribution Private Limited AAECB2295B
Interim Order cum show cause notice in the matter of Reliance Home Finance Limited Page 3 of 100 (hereinafter referred to as “RHFL/the Company/Noticee no.1”) intimating their resignation as the Statutory Auditor of the Company citing various grounds & reasons; certain complaints received by Securities and Exchange Board of India (hereinafter referred to as “SEBI”) alleging siphoning off/diversion of funds of RHFL by promoters and management of the Company; and also receipt of multiple Fraud Monitoring Returns (“FMRs”) from Banks alleging, therein amongst others, that funds borrowed by RHFL from different lenders were partly used towards repayment of loans etc. It was also complained that various, connected parties and companies with weak financials were used as conduits to siphon off funds from RHFL to entities connected to the promoter company viz., Reliance Capital Limited (hereinafter referred to as “RCL/Noticee no. 28”).
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Source: SecMarx — sebi:WTM/SM/CFID/57/2021-22. 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.