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The Central Bureau of Investigation (CBI) has filed its first chargesheet in connection with the alleged diversion of funds by Reliance Home Finance Limited (RHFL), resulting in losses of more than INR 3,526 crore to a consortium of 10 public sector banks. The chargesheet, filed before a special court in Mumbai, names RHFL and three former senior executives on charges of criminal conspiracy and cheating. The agency alleged that borrowed funds were diverted through intermediary entities to companies within the Reliance ADA Group in violation of lending conditions. The investigation remains ongoing, with the CBI indicating that supplementary chargesheets may be filed after examining the role of additional individuals and entities.
The Central Bureau of Investigation (CBI) has filed its first chargesheet in the alleged bank fraud involving Reliance Home Finance Limited (RHFL), accusing the company and three former senior executives of criminal conspiracy and cheating that allegedly caused losses of INR 3,526.35 crore to a consortium of 10 public sector banks. The chargesheet was submitted earlier this week before the Special Court in Mumbai.
According to the agency, the chargesheet names RHFL, its former Executive Director and Chief Executive Officer Ravindra Sudhalkar, former Chief Risk Officer Krishanan Gopalakrishnan Iyer, and Dhananjay Bhagwanprasad Tiwari, former Chief Credit and Risk Officer of Reliance Capital Ltd.
The CBI stated that its investigation found that funds borrowed by RHFL from the consortium of public sector banks were allegedly diverted through intermediary and conduit entities to various companies belonging to the Reliance ADA Group. The agency alleged that these transactions were carried out in violation of the terms and conditions governing the borrowings.
According to the CBI, the alleged diversion of funds resulted in wrongful losses to the lending banks while conferring corresponding wrongful gains on the accused individuals and related entities. The case was registered following complaints lodged by Union Bank of India and other public sector banks that formed part of the lending consortium.
The agency stated that the combined financial loss suffered by the 10-member consortium amounted to INR 3,526.35 crore.
The investigation remains open as the CBI continues to examine the involvement of other directors, corporate entities and public servants who may have played a role in the alleged fraud. The agency said further investigations are underway to determine the extent of responsibility of additional individuals connected with the transactions.
The CBI indicated that supplementary chargesheets are expected to be filed as the investigation progresses and additional evidence is gathered.
The agency also confirmed that former RHFL Executive Director and Chief Executive Officer Ravindra Sudhalkar and former RHFL Director Amit Bapna have been arrested in connection with the case. Both individuals are currently in judicial custody.
The RHFL case forms part of a broader investigation into alleged financial irregularities involving companies of the Reliance ADA Group. The CBI has so far registered seven First Information Reports (FIRs) against Reliance Communications Limited (RCom), Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL) and Reliance Telecom Limited (RTL). These cases were initiated on the basis of complaints received from various public sector banks as well as the Life Insurance Corporation of India (LIC).
The agency has not disclosed any findings against other individuals or entities at this stage and stated that the ongoing investigation will determine whether further criminal liability arises from the alleged diversion of borrowed funds.
Source - PTI
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