Reliance Infrastructure auditor refuses to sign off on ₹4,706 cr
Auditor Chaturvedi & Shah LLP issued a disclaimer of opinion, citing unverified economic rights and multiple regulatory probes as Reliance Infrastructure hunts for ₹3,000 cr in new capital.
— 2 earlier stories on Reliance Infrastructure Ltd. →What's new
- Auditor Chaturvedi & Shah LLP issued a disclaimer of opinion on FY26 results.
- The board approved plans to raise up to ₹3,000 cr via equity or convertibles.
- Vijesh Babu Thota takes over as CEO; Asheesh Chaturvedi becomes CFO.
Why this matters
A disclaimer of opinion is the most severe report an auditor can issue. When an auditor states they cannot verify assets worth more than the company's entire market capitalization, the financial statements lose their core utility as a source of truth.
What we're watching
- How potential investors react to a ₹3,000 cr capital raise given the auditor's stance.
- Progress on the ED, SEBI, and SFIO investigations.
- Clarity on the going-concern risks identified at key subsidiaries.
The full read
Reliance Infrastructure closed FY26 with a severe warning from its auditor. Chaturvedi & Shah LLP issued a disclaimer of opinion, stating they could not verify the recoverability of ₹4,706 crore in economic rights. Regulatory silence is deafening. The auditor reported ongoing probes by the ED, SEBI, and SFIO, alongside material uncertainties regarding the going-concern status of several subsidiaries. Despite this lack of financial clarity, the board authorized a capital raise of up to ₹3,000 crore through equity or convertible instruments. This planned injection is larger than the company's ₹2,767 crore market capitalization. The company also announced a leadership change, naming Vijesh Babu Thota as CEO and Asheesh Chaturvedi as CFO. The auditor has declined to endorse the company's financial health. The proposed capital raise is a test of investor appetite for a balance sheet clouded by multiple investigations and unverified assets.
Questions answered
- What does a disclaimer of opinion from an auditor mean?
- It means the auditor could not obtain enough evidence to provide an opinion on the financial statements. In this case, Chaturvedi & Shah cited specific concerns regarding ₹4,706 crore in economic rights.
- What investigations is the company currently facing?
- The auditor noted ongoing probes from the Enforcement Directorate (ED), the Securities and Exchange Board of India (SEBI), and the Serious Fraud Investigation Office (SFIO).
- How large is the proposed capital raise compared to the company's valuation?
- The board approved raising up to ₹3,000 crore. This figure exceeds the company's current market capitalization of ₹2,767 crore.
- Who are the new executives appointed by the board?
- Vijesh Babu Thota has been appointed as the chief executive officer, and Asheesh Chaturvedi has been named the chief financial officer.
Story so far
All notes on RELINFRA →- 23 May 2026 · 8:50 PM IST Reliance Infrastructure auditor refuses to sign off on ₹4,706 cr
- 3d ago Reliance Infrastructure reports ₹2,900 cr profit despite auditor disclaimer
- 3d ago Reliance Infrastructure auditor refuses to sign off on FY26 results