New Delhi — The Central Bureau of Investigation has arrested two former senior executives of Anil Ambani-led Reliance Group companies in connection with an alleged Rs 7,623 crore bank fraud.
Those arrested are Devang Mody, former director and CEO of Reliance Commercial Finance Limited, and Ravindra Sudhalkar, former executive director and CEO of Reliance Home Finance Limited, the CBI said.
The agency alleged that funds borrowed by RCFL and RHFL were diverted to other Reliance ADA Group companies, including Reliance Capital Limited, Reliance Infrastructure Limited and Reliance Power Limited.
The alleged diversion caused combined losses of Rs 7,623 crore to public sector banks while benefiting the accused and related entities, according to the CBI.
In the RCFL case, the agency alleged that 13 public sector banks suffered losses of Rs 4,097 crore. The RHFL case involves alleged losses of Rs 3,526 crore to 10 government-owned banks.
Mody served as RCFL’s CEO from April 2017 to December 2018 and was responsible for managing the company’s operations, the agency said. Investigators alleged that he approved loans to intermediary and conduit companies despite knowing that the lending violated Reserve Bank of India guidelines and conditions attached to borrowings from public sector banks.
Sudhalkar served as RHFL’s executive director and CEO from October 2016 through March 2022. The CBI alleged that he approved similar loans despite the transactions being contrary to the company’s lending policies, regulatory guidelines and borrowing conditions imposed by public sector banks.
The CBI has registered seven cases against Reliance Communications Limited, Reliance Home Finance, Reliance Commercial Finance and Reliance Telecom Limited based on complaints from public sector banks and the Life Insurance Corporation of India.
The cases remain under investigation and are being monitored by the Supreme Court, the agency said.
Five people have been arrested so far in cases involving Reliance ADA Group companies, including Mody and Sudhalkar.
The CBI filed its first charge sheet in the Reliance Communications case on May 29, naming 16 accused. They included the company, five senior Reliance Communications executives and 10 bank officials.
The agency said its investigation is continuing. (Source: IANS)
