CBI Names Two Reliance Group Cos In First Chargesheet In ₹4,097 Cr RCFL Fraud Case

The Central Bureau of Investigation (CBI) has filed its first chargesheet in the alleged ₹4,097-crore fraud involving Reliance Commercial Finance Limited (RCFL), naming five former senior executives of the company along with two Reliance Group firms.

As per the chargesheet filed before a special CBI court in Mumbai on Tuesday, the agency has named Reliance Infrastructure Ltd and Reliance Home Finance Limited (RHFL) as accused in the case, as per news agency PTI.

The investigation relates to an alleged loss of ₹4,097 crore suffered by a consortium of 13 public sector banks.

According to a statement issued by the CBI, the five former RCFL officials named in the chargesheet are Devang Pravin Mody, former Director and CEO; Ravindra Somayajula Rao, Director; Dhananjay Bhagwanprasad Tiwari, Director; Rajesh Krishnamoorthy, Executive Risk Officer; and Lav Chaturvedi, Chief Risk Officer.

"They have been chargesheeted for offences of criminal conspiracy and cheating with intent to cause huge losses to public sector banks," a CBI spokesperson said in a statement, as per PTI.

Alleged Diversion of Borrowed Funds

According to the agency, its investigation found that funds borrowed by RCFL were allegedly diverted through intermediary and conduit entities to several Reliance ADA Group companies, violating the conditions attached to the borrowings.

The CBI alleged that the diversion resulted in wrongful losses to the lending banks while benefiting the accused individuals and related entities.

CBI said that the agency had registered the case based on complaints received from Bank of Maharashtra and other PSU banks of the consortium, and the total loss caused to 13 public sector banks is ₹4,097 crore, as per PTI.

Investigation Remains Open

The CBI has kept the investigation open to examine the role of additional directors, corporate entities and public servants allegedly linked to the case.

The agency is expected to file supplementary chargesheets as the probe progresses.

The agency had earlier arrested former Reliance Capital vice chairman Amitabh Jhunjhunwala, former RCFL CEO Devang Pravin Mody and former Reliance Capital CFO Amit Bapna.

According to the CBI, Jhunjhunwala and Mody are currently in judicial custody, while Bapna remains in CBI custody. Officials told PTI that the investigation into the roles of Jhunjhunwala and Bapna is continuing.