The Central Bureau of Investigation (CBI) on Tuesday filed its first chargesheet in the Reliance Commercial Finance Limited (RCFL) case before a special court in Mumbai. The chargesheet names seven accused, including two Reliance Group companies—Reliance Infrastructure Ltd and Reliance Home Finance Limited (RHFL)—and five former senior executives of RCFL.
Accused Named in Chargesheet
The individuals charged include Devang Pravin Mody (Director & CEO), Ravindra Somayajula Rao (Director), Dhananjay Bhagwanprasad Tiwari (Director), Rajesh Krishnamoorthy (Executive Risk Officer), and Lav Chaturvedi (Chief Risk Officer). They face allegations of criminal conspiracy and cheating with intent to cause massive losses to public sector banks.
Investigation Reveals Fund Diversion
The CBI investigation revealed that funds borrowed by RCFL were diverted through intermediary and conduit entities to various Reliance ADA Group companies, violating the terms and conditions of the borrowings. This resulted in a wrongful loss of Rs 4,097 crore to a consortium of 13 public sector banks, with corresponding wrongful gains to the accused and related entities.
Origin of the Case
The case was registered based on complaints from Bank of Maharashtra and other PSU banks in the consortium. The CBI has kept the investigation open to ascertain the role of other directors, entities, and public servants involved. Supplementary chargesheets are expected to be filed in due course.
Arrests Made So Far
The CBI has arrested three individuals in this case: Amitabh Jhunjhunwala, former Vice Chairman of Reliance Capital Ltd; Devang Pravin Mody, former CEO of RCFL; and Amit Bapna, former Chief Financial Officer of Reliance Capital Ltd. Jhunjhunwala and Mody are currently in judicial custody, while Bapna is in CBI custody.
Broader Context of Reliance ADA Cases
The CBI has registered seven FIRs against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited based on complaints from various public sector banks and LIC. The first chargesheet in the Reliance Communications case was filed on May 29 against 16 accused. The current chargesheet is the second filed in the Reliance ADA Group cases. These cases remain under investigation, with monitoring by the Supreme Court.
