The Central Bureau of Investigation arrested Devang Mody, former Director and CEO of Reliance Commercial Finance Limited, and Ravindra Sudhalkar, former Executive Director and CEO of Reliance Home Finance Limited, on Monday in connection with the ongoing probe into Reliance ADA Group cases involving alleged diversion of bank loans.
CBI Details Financial Loss
According to the CBI, the two former executives are accused of causing a combined wrongful loss of Rs 7,623 crore to public sector banks. In the RCFL case, the agency said the accused caused a loss of Rs 4,097 crore to 13 PSBs. In the RHFL case, the loss amount is Rs 3,526 crore to 10 PSBs.
Role of Devang Mody
Investigation revealed that Devang Mody, who served as CEO of RCFL from April 2017 to December 2018, was a key decision-maker responsible for managing the company's operations. The CBI said he approved loans to intermediary and conduit companies despite being aware that such lending was contrary to RBI guidelines and the sanction conditions governing borrowings from PSBs.
Role of Ravindra Sudhalkar
For RHFL, investigation revealed that Ravindra Sudhalkar served as ED and CEO from October 1, 2016 to March 31, 2022 and was a key decision-maker responsible for managing operations. The agency alleged he approved loans to intermediary and conduit companies despite such lending being contrary to the company's lending policies, NHB/RBI guidelines, and conditions governing borrowings from PSBs.
Fund Diversion to Reliance ADA Group
The CBI further said investigation revealed that the accused persons diverted funds borrowed by RCFL and RHFL to Reliance ADA Group companies, including Reliance Capital Ltd., Reliance Infrastructure Ltd., and Reliance Power Ltd., thereby causing a combined wrongful loss of Rs 7,623 crore to the lending banks and corresponding wrongful gain to themselves and related entities.
Background of the Case
It may be recalled that the CBI has registered seven FIRs against Reliance Communications Limited, RHFL, RCFL, and Reliance Telecom Limited based on complaints from various PSBs and LIC. These cases are under investigation and are being monitored by the Supreme Court.
The CBI filed its first chargesheet in the RCom case on May 29, 2026, against 16 accused persons, including the company, five senior executives of RCom, and ten bank officials. With the latest arrests, the CBI has so far arrested five persons in Reliance ADA Group cases, including Mody and Sudhalkar. Further investigation is continuing.
