A special CBI court in Mumbai on July 9 denied bail to two former senior executives of Reliance Communications (RCOM) in connection with a bank fraud case. Special Judge Nitin V Jiwane rejected the bail applications of Viswanath Devaraja Rao, 67, former senior vice president and joint president, and Anil Jamna Kalya, 52, a chartered accountant and former vice president of the company.
Court's Reasoning and Allegations
The court observed that the allegations against the accused were serious in nature, involving substantial financial irregularities. The CBI had opposed the bail pleas, arguing that the executives played a key role in the alleged fraud and that their release could hamper the investigation. The agency also cited the risk of tampering with evidence and influencing witnesses.
According to the CBI, the case pertains to a loan default of over Rs 400 crore by RCOM to a consortium of banks led by the State Bank of India. The agency alleged that the company and its officials misrepresented financial statements and diverted funds, causing wrongful loss to the banks.
Background of the Case
The bank fraud case against RCOM and its former officials has been under investigation since 2019. The CBI registered a case based on a complaint from the SBI-led consortium, alleging that RCOM and its directors, including former chairman Anil Ambani, had cheated the banks by misusing loans and siphoning off funds. The total exposure of the banks to RCOM was around Rs 5,600 crore.
In February 2023, the CBI filed a charge sheet against Anil Ambani and other former executives. The court has been hearing arguments on bail applications from various accused. Rao and Kalya were arrested in June 2026 and have been in judicial custody since.
Legal Proceedings and Next Steps
The defense counsel argued that the accused were not involved in the day-to-day operations related to the alleged fraud and that they had cooperated with the investigation. They also claimed that the CBI's case was based on documentary evidence that did not directly implicate them. However, the court was not convinced and held that the seriousness of the offense and the need for a thorough investigation warranted their continued custody.
The court has now posted the matter for further hearing on July 20, when it will consider the CBI's application for extension of judicial custody. The accused may file fresh bail applications at a later stage.
