Anil Ambani’s troubles increased further, now the Ministry of Corporate Affairs has started investigation of group companies.

News India Live, Digital Desk: The round of bad news is not stopping for industrialist Anil Ambani and his Reliance Group, who was once among the richest people in the country. Now the Ministry of Corporate Affairs has also come into the field of investigation against him. Quoting sources, it is reported that the Ministry has ordered investigation against some companies of Anil Ambani Group.

This investigation has been initiated into alleged irregularities in the accounts of the group companies and flaws in corporate governance. This move is another big blow for Anil Ambani, who is already struggling with debt and many legal matters.

Which companies are under the shadow of investigation?

At present, it is not clear which specific companies the Ministry is investigating, but it is believed that the big and debt-ridden companies of the group may be under the ambit of investigation. This investigation of the Ministry is being done under Section 206 of the Companies Act, 2013, which gives the government the right to examine the accounts of any company and seek explanations from them.

If the investigation finds any serious financial irregularities or fraud, the government can also hand over the case to the Serious Fraud Investigation Office (SFIO), which is considered a major action.

Why was this investigation needed?

Anil Ambani’s companies have been going through huge debts, bankruptcy proceedings and many financial crises for the last several years.

• Heavy burden of debt: Big companies of the group like Reliance Capital and Reliance Naval and Engineering are burdened with heavy debt and are facing bankruptcy process.
• SEBI action: Earlier, market regulator SEBI had also taken action against Reliance Capital for alleged diversion of funds and violation of rules.
• Pressure from creditors: The group is also under heavy pressure from banks and other financial institutions to repay its dues.

This new investigation by the Ministry of Corporate Affairs is an indication that the government is now in a mood to take more strictness regarding the functioning and financial condition of the group companies. This investigation can prove to be very important for the future of Anil Ambani and his group.