The central bureau of investigation (CBI) has arrested Amitabh Jhunjhunwala, former group managing director (MD) of Reliance Communications Ltd (RCom), in connection with an alleged bank loan fraud that caused a loss of ₹2,929.05 crore to State Bank of India (SBI).
Mr Jhunjhunwala was produced before a special CBI court in Mumbai on Monday after being brought from Delhi's Tihar Jail, where he was lodged in judicial custody in a related money laundering case being investigated by the directorate of enforcement (ED).
According to CBI, Mr Jhunjhunwala served as group MD of Reliance Communications during the relevant period and exercised control over key functions, including corporate finance, banking operations and the utilisation of funds. The agency alleges that he played a central role in securing loans from banks and overseeing the management of borrowed funds.
The arrest comes days after CBI filed its first charge-sheet in the case on 29 May 2026 against 16 accused, including Reliance Communications, five senior company executives and 10 bank officials.
The case originates from a complaint filed by SBI against Reliance Communications and its promoter, Anil Dhirubhai Ambani, alleging that the company caused a wrongful loss of ₹2,929.05 crore to the bank.
Investigators allege that Mr Jhunjhunwala coordinated with senior officials of lending banks to obtain loans and advances for the company. Loan proceeds received from banks were allegedly managed and utilised by other RCom officials under his directions.
CBI claims that the funds were diverted and misutilised, resulting in substantial losses to lenders. As repayment obligations were not met, the loan accounts were eventually classified as non-performing assets (NPAs).
According to the agency, Mr Jhunjhunwala was instrumental in obtaining loans from multiple banks and acted on instructions from promoters of Reliance Communications group companies.
CBI said term loans had been sanctioned to Reliance Communications by a consortium of 11 banks led by SBI. Collectively, these lenders suffered losses of around ₹6,015 crore.
The complaint further states that the total exposure of lenders to Reliance Communications stood at ₹19,694.33 crore and involved 17 public sector banks.
The agency is investigating allegations of diversion and misuse of loan funds that ultimately led to the default.
Mr Jhunjhunwala was produced before Special CBI judge JP Darekar after the agency obtained a production warrant from Tihar Central Jail.
Following his appearance, special public prosecutor A Limosin sought permission to formally arrest the accused and moved an application seeking his remand.
CBI informed the court that before being transferred to Mumbai, jail authorities in Delhi referred Mr Jhunjhunwala to the All India Institute of Medical Sciences (AIIMS) for a medical examination. A medical board declared him fit to travel, following which he was brought to Mumbai and produced before the court.
The court took note of his formal arrest and remanded him to judicial custody in the RCom case. He has since been lodged in Arthur Road Jail. The agency's plea seeking police custody is scheduled to be heard on Tuesday.
CBI also said it has registered six additional first information reports (FIRs) against RCom, Reliance Home Finance Ltd (RHFL), Reliance Commercial Finance Ltd (RCFL) and Reliance Telecom Ltd (RTL) based on complaints from various public sector banks and the Life Insurance Corporation of India (LIC).
These investigations are currently underway and are being monitored by the Supreme Court.
In April, ED arrested Amit Bapna, former chief financial officer (CFO) and chief operating officer (COO) of Reliance Capital Ltd, in connection with the same investigation.
According to investigators, Mr Jhunjhunwala played a key role in the financial operations of RHFL and RCFL and was among the principal decision-makers during his tenure as vice-chairman of Reliance Capital and group managing director within the Anil Dhirubhai Ambani Group (ADAG).
Officials allege that the accused facilitated the diversion of large amounts of public funds through a network of shell companies with negligible financial standing and no genuine business activity.
These entities were allegedly used to layer transactions, making it difficult to trace the ultimate beneficiaries and conceal the diversion of funds.
The probe relates to an alleged banking fraud exceeding ₹40,000 crore. Investigators estimate that more than ₹11,000 crore became NPAs and was subsequently diverted.
So far, ED has attached assets worth between ₹15,000 crore and ₹17,000 crore across multiple cases linked to the group. These include high-value properties, bank balances and other financial holdings identified as proceeds of crime.
Among the attached assets is a premium residential property in Mumbai valued at more than ₹3,600 crore. In March, the agency also provisionally attached 31 immovable properties worth ₹581.65 crore across Maharashtra, Tamil Nadu, Uttar Pradesh, Delhi and Karnataka.
The case has involved coordinated action by ED and the CBI. Mr Jhunjhunwala had earlier been questioned by the CBI for more than three days in March.
Investigators have also questioned Anil Ambani at least twice in connection with money laundering investigations, with his statements most recently recorded on 26 February 2026.
In a regulatory filing, the Reliance ADA group stated that Mr Jhunjhunwala left the group in September 2019 and has had no association with it since then. Similarly, Amit Bapna exited the group in December 2019.
A spokesperson for Anil Ambani said that Mr Jhunjhunwala is currently operating as a fund manager with business interests in Dubai and Singapore.
The right hand man Amitabh Jhunjhunwala, on the day of arrest, claims in court :catch the main culprit, in a way targeting his master Anil Ambani directly.
Yet despite having one accused in custody, the agency does not even attempt a basic procedure of confronting the arrested accused with the supposed prime accused. Will the next agency confront Amitabh Jhunjhunwala with Anil Ambani and Sateesh Seth before the agency's custody ends tomorrow. If it does, Jhunjhunwala may end up expanding his allegations on face of Anil Ambani in presence of investigators. If they want to catch the "main culprit" - directed at Anil Ambani - in words of Amitabh Jhunjhunwala in front of a Delhi Special Court.
Both CBI and Accuseds counsels had enough time to land at the courtroom, after Jhunjhunwala took a flight from Delhi, taking 7 hours to reach the Court after leaving Tihar. Yet CBI wasn't ready to host an unexpected guest overnight.
Amongst the few times when an agency that has asked for an accused's presence in a different city, is unprepared to receiving and lodge him. When has an agency been unprepared to keep an accused in their office or guest house overnight. If not Amitabh Jhunjhunwala himself, someone somewhere is working behind the scenes orchestrating unusual occurence's. For now it looks like an express pass for Amitabh Jhunjhunwala outside Tihar, and soon to be outside Arthur Road Jail.
Lets wait for the next medical examination at Byculla Hospital where Jhunjhunwala took Orthopedic treatment earlier this year, while doing acrobats like a teenager at the age of 69. Byculla Hospital medical examinations might turn contrary to the recent clean chit of no health concerns by AIIMS to Anil Ambani's closest aide and loyalist Amitabh Jhunjhunwala. Else Anil Ambani would be spending a family vacation at Tihar with Punit Garg in the Manhattan Apartment sale case.
Will the daily Home cooked food come from NCPA Apartments or Sea Wind... Atleast Jhunjhunwala can expect a piece of eggless cake on his master Anil's 67th birthday this Thursday; if not the mahaprasad of the yagya to pacify junior Ambani's stars. The question is whether the master will get the man friday out before his next birthday on July 31st. All efforts appear to be going for the cause of Jhunjhunwala's freedom and flight to dubai, singapore and other nations of interest for management of global funds.