New Delhi, June 22: The Central Bureau of Investigation (CBI) has arrested 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), as part of an ongoing investigation linked to the Reliance ADA Group.
The investigation revealed that the accused caused a loss of ₹4,097 crores to 13 public sector banks (PSBs) in the RCFL case, while the RHFL case resulted in a loss of ₹3,526 crores to 10 banks.
Devang Modi, who served as CEO of RCFL from April 2017 to December 2018, was identified as the key decision-maker managing the company’s operations. He approved loans to intermediary and medium-sized companies despite knowing that such lending violated RBI guidelines and the conditions for borrowing from public sector banks.
Similarly, Ravindra Sudhalkar, who held the position of ED and CEO of RHFL from October 1, 2016, to March 31, 2022, also acted as the principal decision-maker. He too approved loans to intermediary and medium-sized companies, contravening the company’s lending policies and RBI guidelines.
The investigation uncovered that the funds from loans taken by RCFL and RHFL were diverted to companies within the Reliance ADA Group, including Reliance Capital Limited, Reliance Infrastructure Limited, and Reliance Power Limited. This diversion resulted in a total loss of ₹7,623 crores to the lending banks and provided undue benefits to the accused and their associated entities.
The CBI has registered seven FIRs against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL) based on complaints received from various public sector banks and LIC. The Supreme Court is currently overseeing this investigation.
To date, the CBI has arrested five individuals connected to the Reliance ADA Group cases. On May 29, the agency filed its first charge sheet in the RCom case against 16 accused, including five senior executives from RCom and ten bank officials.
Among those arrested are Devang Modi and Ravindra Sudhalkar.
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