Reliance Infrastructure's Auditors Resign Citing SEBI Probe; Company Disputes Reasons
Reliance Infrastructure's statutory auditors, Chaturvedi & Shah LLP, intend to resign citing a SEBI investigation into alleged fund misuse and fraud. The company disputes the reasons for resignation and will take legal steps. The auditors have served for over five years and offered to complete the FY2025-26 audit.
Auditor resignation can raise serious concerns among investors and stakeholders about the company's financial health and governance, potentially leading to stock price volatility and increased regulatory scrutiny.
The resignation of statutory auditors, especially citing regulatory investigations and alleged fraud, is a significant negative development for the company's reputation and financial oversight.
Reliance Infrastructure Limited announced that its statutory auditors, M/s Chaturvedi & Shah LLP, have intimated their intention to resign as auditors after completing the statutory audit for the financial year ended March 31, 2026 (FY2025-26). The auditors cited a Show Cause Notice (SCN) received from SEBI alleging gross irregularities, misutilization of funds, and concealment of relationships with CLE Private Limited as reasons for their resignation. They also mentioned investigations initiated by statutory authorities and allegations of suspected fraud.
The company, however, stated that it does not agree with the reasons cited by the auditors and considers the filing of Form ADT-4 incorrect and invalid. Reliance Infrastructure Limited has stated it will take all legally advised steps.
M/s Chaturvedi & Shah LLP has served as the company's statutory auditor for over five years. The auditors offered to continue until the completion of the statutory audit for FY2025-26.
Separately, a media release from October 29, 2025, addressed allegations by Cobrapost against the Reliance Group, terming them a malicious campaign to tarnish reputations and mislead stakeholders. The company asserted that Cobrapost's claims were a recycling of old, publicly available information already examined by authorities and accused Cobrapost of engaging in extortion and intimidation tactics. Reliance Infrastructure and Reliance Power had filed a complaint with SEBI regarding stock trading patterns.
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Reliance Infrastructure Limited filed this with the NSE as a statutory disclosure, categorised under auditor changes. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Reliance Infrastructure Limited. Read the original for the full detail.