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The Central Bureau of Investigation (CBI) has filed its first chargesheet in the alleged Reliance Commercial Finance Limited (RCFL) bank fraud case, accusing five former senior executives of criminal conspiracy and cheating in connection with the diversion of borrowed funds. The chargesheet, submitted before a special court in Mumbai in the past week, also names Reliance Infrastructure Ltd and Reliance Home Finance Limited (RHFL) as accused entities. According to the CBI, the alleged diversion of funds caused a wrongful loss of INR 4,097 crore to a consortium of 13 public sector banks. The agency stated that the investigation remains ongoing into the roles of additional directors, entities and public servants, with supplementary chargesheets expected as the probe into the wider financial transactions continues.
The Central Bureau of Investigation (CBI) has filed its first chargesheet in the alleged Reliance Commercial Finance Limited (RCFL) loan fraud case, accusing five former senior executives of the company of criminal conspiracy and cheating in connection with the alleged diversion of borrowed funds that resulted in losses of INR 4,097 crore to a consortium of 13 public sector banks. The chargesheet was filed before a special court in Mumbai in the past week.
The agency has also named Reliance Infrastructure Ltd and Reliance Home Finance Limited (RHFL) as accused entities in the case. According to the CBI, the investigation relates to the alleged diversion of funds borrowed by RCFL in violation of the terms governing the lending arrangements.
In a statement, the CBI said the chargesheet names Devang Pravin Mody, former Director and Chief Executive Officer of RCFL; Ravindra Somayajula Rao, former Director; Dhananjay Bhagwanprasad Tiwari, former Director; Rajesh Krishnamoorthy, former Executive Risk Officer; and Lav Chaturvedi, former Chief Risk Officer. They have been charged with offences relating to criminal conspiracy and cheating with the alleged intention of causing substantial financial losses to public sector banks.
According to the agency's investigation, funds borrowed by RCFL were allegedly diverted through intermediary and conduit entities to various Reliance ADA Group companies. The CBI alleged that these transactions were carried out in breach of the terms and conditions attached to the borrowings, resulting in wrongful losses for the lending banks and corresponding gains for the accused individuals and related entities.
The agency stated that the case was registered following complaints received from Bank of Maharashtra and other public sector banks that were part of the lending consortium. The CBI said the combined financial loss suffered by the 13 public sector banks has been assessed at INR 4,097 crore.
The investigation remains open, with the agency examining the alleged involvement of additional directors, corporate entities and public servants in connection with the transactions. The CBI indicated that supplementary chargesheets are likely to be filed as the investigation progresses.
The agency had previously arrested Amitabh Jhunjhunwala, former Vice Chairman of Reliance Capital Ltd; Devang Pravin Mody, former Chief Executive Officer of RCFL; and Amit Bapna, former Chief Financial Officer of Reliance Capital Ltd, in connection with the case.
According to the CBI, Jhunjhunwala and Mody are currently in judicial custody, while Bapna remains in CBI custody. Officials said the investigation into the alleged roles of Jhunjhunwala and Bapna is continuing.
The CBI has also registered seven first information reports against Reliance Communications Ltd, Reliance Home Finance Limited, Reliance Commercial Finance Limited and Reliance Telecom Ltd based on complaints received from various public sector banks and the Life Insurance Corporation of India.
Source - PTI
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