CBI Intensifies Probe into Multi-Crore Reliance Communications Fraud Case
The Central Bureau of Investigation (CBI) has significantly deepened its ongoing investigation into the alleged multi-crore fraud involving Reliance Communications (RCOM) and State Bank of India (SBI). In a major development, the agency has questioned three former top-tier executives of the Anil Ambani-led Reliance Group as part of this expanding probe.
Summons Issued to Key Former Managing Directors
The CBI has issued formal summons to Satish Seth and Gautam Doshi, both former group managing directors, for detailed examination in connection with the First Information Report (FIR) registered following a formal complaint by SBI. This action follows the recent questioning of a third former group managing director, Amitabh Jhunjhunwala, who was examined by the agency over a three-day period.
Sources indicate that Jhunjhunwala's questioning was strategically scheduled in the lead-up to the scheduled appearance of Anil Ambani himself on March 19 and 20, suggesting a coordinated investigative approach by the agency.
Profiles of the Questioned Executives
The three executives represent significant figures in the corporate history of the Reliance Group:
- Satish Seth previously held the position of vice-chairman at Reliance Infrastructure Ltd and served on the board of Reliance Telecom Ltd (RTL).
- Gautam Doshi was also a board member of RTL during the period under investigation.
- Amitabh Jhunjhunwala, described as a longtime confidant of the group, formerly served as the vice-chairman of Reliance Capital.
All three were central figures in the Anil Ambani-led Reliance Group for over 15 years, with Seth and Jhunjhunwala being veterans of the undivided Reliance Group. Both had been associated with Reliance Industries Limited for more than two decades prior to the high-profile corporate demerger that separated the business empires of the Ambani brothers.
Current Professional Engagements of Former Executives
Since leaving the Reliance Group, the three executives have pursued independent ventures:
- Amitabh Jhunjhunwala currently operates as an independent fund manager with significant operations based in Dubai and Singapore.
- Satish Seth has transitioned into real estate and software ventures.
- Gautam Doshi, according to official sources, now leads a prominent tax and mergers and acquisitions advisory firm while also serving on the boards of several major companies.
When contacted for comment on the investigation, the Reliance group declined to provide any statement, noting that these officials were no longer associated with the company.
Background of the Fraud Case
The Supreme Court had earlier directed the CBI to file separate FIRs into complaints from different banks against Anil Ambani group companies, setting the stage for this comprehensive investigation.
Last year, the CBI filed a formal case against M/s Reliance Communications based on a complaint lodged by SBI, which serves as the lead bank of a consortium consisting of 11 financial institutions. The alleged fraud amounts to a staggering Rs 2,929 crore.
Forensic Audit Findings
According to CBI documents, the complaint is substantiated by a forensic audit report that alleges:
- Large-scale diversion and misuse of loan funds
- Execution of interlinked and circuitous transactions among group entities
- These activities occurred primarily during the period 2013-17
- The alleged misconduct resulted in a wrongful loss of Rs 2,929 crore to SBI
- This loss represents part of a total exposure of Rs 19,694 crore involving 17 public sector banks
The investigation continues to unfold as the CBI methodically examines the complex financial transactions and corporate relationships that form the basis of this significant banking fraud allegation.
