U.K. investigators have found that a conglomerate controlled by Anil Ambani used a Mauritius-based fund to make covert investments in one of its own companies,”
the
Financial Times
reported.
His firm, Reliance Group, invested $250 million in the offshore fund that in bought securities to a company in the group, in violation of Indian law, the report said.
The complex chain of investments, long the subject of media speculation in India, is now at the centre of a disciplinary action bought by the U.K.’s Financial Services Authority against the former private bankers at UBS who set up the investment fund.
Ambani has not been charged with wrongdoing and denies knowledge or authorization of the transaction, the
FT
report said. The article noted that Ambani, several Reliance Group directors and two Reliance Companies paid $11 million to India’s financial regulator last January to settle a case involving alleged violations of overseas borrowing rules and misrepresentation of financial statements. (Source:
Financial Times,
Dec. 24-25, 2011.)
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