New Delhi, June 22: The Central Bureau of Investigation (CBI) has arrested two former CEOs linked to Anil Ambani’s Reliance ADA Group as part of an ongoing investigation into a massive bank fraud. The arrested individuals are Devang Modi, former Director and CEO of Reliance Commercial Finance Limited (RCFL), and Ravindra Sudhalkar, former Executive Director and CEO of Reliance Home Finance Limited (RHFL). This information was disclosed by the central investigative agency on Monday.
According to the CBI’s statement, the investigation revealed that the accused transferred funds obtained from RCFL and RHFL to other companies within the Reliance ADA Group, including Reliance Capital Limited, Reliance Infrastructure Limited, and Reliance Power Limited. This fraudulent activity resulted in a total loss of ₹7,623 crore to government banks, while the accused and their associated companies gained equivalent benefits.
In the RCFL case, the accused caused a loss of ₹4,097 crore to 13 government banks, while in the RHFL case, 10 government banks suffered a loss of ₹3,526 crore.
The CBI’s investigation indicates that Modi, who served as CEO of RCFL from April 2017 to December 2018, was the primary decision-maker responsible for the company’s operations. He approved loans to intermediary companies despite knowing that such lending violated RBI regulations and the conditions for borrowing from public sector banks.
On the other hand, Sudhalkar was the Executive Director and CEO of RHFL from October 1, 2016, to March 31, 2022, also acting as the main decision-maker. He too approved loans to intermediary companies, which contravened the company’s lending policies, NHB/RBI regulations, and the borrowing conditions set by public sector banks.
The CBI has filed seven FIRs against Reliance Communication Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL) based on complaints received from various government banks and LIC. These cases are currently under investigation, with the Supreme Court overseeing the proceedings.
On May 29, the CBI submitted its first charge sheet in the RCom case, naming 16 individuals as accused, including the company, five senior executives of RCom, and 10 bank officials. To date, the CBI has arrested five individuals in connection with the Reliance ADA Group cases, including Modi and Sudhalkar. The statement confirmed that further investigations are ongoing.
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