CBI files first chargesheet against seven in Reliance Commercial Finance loan fraud case
The Central Bureau of Investigation (CBI) on Tuesday filed its first chargesheet against seven accused in the Reliance Commercial Finance Limited (RCFL) case, alleging diversion of funds and causing losses of ₹4,097 crore to public sector banks.
The chargesheet names two Reliance Group companies — Reliance Infrastructure Ltd. and Reliance Home Finance Ltd. (RHFL) — and five former senior executives of RCFL. The individuals include former director and chief executive officer Devang Pravin Mody, directors Ravindra Somayajula Rao and Dhananjay Bhagwanprasad Tiwari, executive risk officer Rajesh Krishnamoorthy, and former chief risk officer Lav Chaturvedi.
They have been accused of criminal conspiracy and cheating with intent to cause wrongful losses to public sector banks. According to the CBI, funds borrowed by RCFL were diverted through intermediary and conduit entities to various Reliance ADA Group companies, violating the terms and conditions governing the borrowings.
The case was registered based on complaints from the Bank of Maharashtra and other public sector banks that are part of a 13-member consortium. The alleged total loss amounts to ₹4,097 crore.
The CBI stated that further investigation remains open to ascertain the role of other directors, entities, and public servants involved in causing wrongful loss to the banks. Supplementary chargesheets are expected to be filed later.
So far, three accused have been arrested in the case: Amitabh Jhunjhunwala, former vice-chairman of Reliance Capital Ltd.; Mr. Mody; and Amit Bapna, former chief financial officer of Reliance Capital Ltd. Mr. Jhunjhunwala and Mr. Mody are currently in judicial custody, while Mr. Bapna is in CBI custody.
The agency has registered seven cases against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL) based on complaints from various public sector banks and the Life Insurance Corporation of India. The first chargesheet in the RCom case was filed on May 29 against 16 accused.
The CBI said these cases are under investigation, monitored by the Supreme Court, and the agency remains committed to an expeditious and comprehensive probe.
