In a significant regulatory development, the Securities and Exchange Board of India (SEBI) has issued show cause notices to two Anil Ambani-linked companies—Reliance Infrastructure Ltd and Reliance Power Ltd—over alleged violations of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, and the SEBI Act, 1992. The notices pertain to the companies’ exposure to CLE Private Limited, a matter that had previously been settled through mediation in the Bombay High Court.
The notices, served in early October 2025, have reignited scrutiny over the financial dealings of the Anil Dhirubhai Ambani Group (ADAG), especially in light of earlier investigations by the Enforcement Directorate (ED) into alleged loan diversions involving over 50 companies linked to the group.
SEBI Show Cause Notices – Timeline and Context
| Date | Event Description | Entity Involved | Outcome/Status |
|---|---|---|---|
| Aug 2023 | Pre-institution mediation initiated | Reliance Infra & CLE Pvt Ltd | Dispute resolution process begins |
| Feb 9, 2025 | Settlement agreement of ₹6,503 crore disclosed | Reliance Infra | Public disclosure made |
| July 2025 | ED raids 35 premises linked to ADAG | Multiple ADAG entities | Alleged loan diversion probe |
| Oct 7, 2025 | SEBI issues show cause notices | Reliance Infra & Reliance Power | Legal response pending |
Reliance Infrastructure, in its stock exchange filing, stated that the SEBI notice came eight months after the ₹6,503 crore dispute with CLE Private Limited was resolved through mediation conducted by a retired Supreme Court judge. The company emphasized that the settlement was fully implemented under the Mediation Act, 2023, and that it would take “appropriate steps in the matter, as legally advised.”
Reliance Power, meanwhile, clarified that it has “zero exposure” to CLE Private Limited and that its inclusion in the notice was procedural. “The company shall take appropriate steps in the matter, as legally advised,” it said in its BSE filing.
Reliance Group Entities – Exposure to CLE Pvt Ltd
| Company Name | Exposure to CLE Pvt Ltd | SEBI Notice Received | Settlement Status |
|---|---|---|---|
| Reliance Infrastructure | ₹6,503 crore | Yes | Settled via mediation |
| Reliance Power | ₹0 | Yes | No financial exposure |
| Other ADAG entities | Not disclosed | Under ED probe | Investigation ongoing |
The SEBI notices have triggered a sharp reaction in the stock market. Shares of Reliance Infrastructure fell by 2.36% to ₹238.50 on the NSE, while Reliance Power dipped 1.19% to ₹44.81. The broader BSE Sensex, in contrast, rose by 0.7% on the same day, indicating investor caution around ADAG-linked counters.
Stock Market Impact – October 7, 2025
| Company Name | Previous Close | Current Price | % Change | Market Sentiment |
|---|---|---|---|---|
| Reliance Infrastructure | ₹244.30 | ₹238.50 | -2.36% | Negative |
| Reliance Power | ₹45.35 | ₹44.81 | -1.19% | Cautious |
| BSE Sensex | 66,200 | 66,660 | +0.70% | Positive |
The controversy has also revived public interest in Anil Ambani’s business empire, which has undergone significant restructuring since the demerger from Reliance Industries in 2006. While Mukesh Ambani’s Reliance Industries has surged ahead in telecom, retail, and energy, Anil Ambani’s group has faced mounting debt, regulatory scrutiny, and asset divestments.
Anil Ambani Group – Key Business Entities and Focus Areas
| Company Name | Sector | Status (2025) | Recent Developments |
|---|---|---|---|
| Reliance Infrastructure | Engineering & Utilities | Active | SEBI notice, ED probe |
| Reliance Power | Power Generation | Active | SEBI notice, zero CLE exposure |
| Reliance Communications | Telecom | Insolvent | Bankruptcy proceedings ongoing |
| Reliance Capital | Financial Services | Under resolution | NCLT-led restructuring |
The Enforcement Directorate’s July 2025 raids on over 35 premises in Mumbai and New Delhi linked to ADAG were part of a broader investigation into alleged illegal diversion of loans. While Reliance Infrastructure has denied any wrongdoing, stating that its ₹6,500 crore exposure was transparently disclosed over the past four years, the SEBI notices suggest that regulatory concerns persist.
Legal experts believe that the show cause notices could lead to penalties, enhanced disclosures, or even restrictions on future capital market participation, depending on the outcome of SEBI’s adjudication process.
Possible Regulatory Outcomes – SEBI Show Cause Proceedings
| Outcome Type | Description | Likelihood (Expert View) |
|---|---|---|
| Monetary Penalty | Fines for procedural lapses or delayed disclosures | High |
| Market Restrictions | Temporary bar from raising capital | Moderate |
| Enhanced Disclosures | Mandatory quarterly updates on exposure matters | High |
| No Action | If SEBI finds no violation post-hearing | Low |
Social media platforms have seen a surge in discussions around the SEBI notices, with hashtags like #AnilAmbani, #RelianceInfra, and #SEBINotice trending across Twitter/X and LinkedIn. Investors, analysts, and legal commentators are closely tracking the developments, especially in light of India’s tightening corporate governance norms.
Public Sentiment – Social Media Buzz on SEBI Notices
| Platform | Engagement Level | Sentiment (%) | Top Hashtags |
|---|---|---|---|
| Twitter/X | 1.2M mentions | 68% skeptical | #AnilAmbani #SEBINotice #RelianceInfra |
| 950K interactions | 74% analytical | #CorporateGovernance #ADAG | |
| 870K views | 65% mixed | #ReliancePower #SEBIInvestigation | |
| YouTube | 820K views | 70% informative | #AmbaniExplained #SEBIActionWatch |
In conclusion, SEBI’s show cause notices to Anil Ambani-linked Reliance Infrastructure and Reliance Power mark a critical juncture in India’s corporate regulatory landscape. While the companies maintain that the CLE Pvt Ltd dispute has been resolved, the regulator’s move underscores the importance of transparency, timely disclosures, and compliance. As the adjudication process unfolds, stakeholders await clarity on the future of ADAG’s capital market participation and governance standards.
Disclaimer: This article is based on publicly available regulatory filings, verified financial data, and expert commentary. It does not constitute investment advice or legal opinion. Readers are advised to follow updates from SEBI, stock exchanges, and official company disclosures for accurate information.
