A special CBI (central bureau of investigation) court in Mumbai has remanded Amitabh Jhunjhunwala, former group managing director (MD) within the Anil Dhirubhai Ambani (ADA) group, to CBI custody until 12 June 2026 in connection with an alleged bank fraud involving Reliance Commercial Finance Ltd (RCFL).
The development marks the latest action in a widening investigation into alleged diversion of bank funds and financial irregularities linked to Reliance ADA group entities. Mr Jhunjhunwala was already in judicial custody in a separate case based on a complaint by State Bank of India (SBI) against Reliance Communications Ltd (RCom), which allegedly caused losses of ₹2,929.05 crore to the Bank.
According to CBI, RCFL, its directors and unknown public servants allegedly conspired to defraud a consortium of 31 banks and financial institutions from which the company had availed loans totalling about ₹9,280 crore.
The probe originated from a complaint filed by Bank of Maharashtra in November 2025 after it reported a loss of ₹57.47 crore. Subsequently, complaints from other lenders, including Punjab National Bank (PNB) and SBI, were merged into the same investigation because they were based on findings of a forensic audit conducted by Grant Thornton in May 2020.
CBI has alleged that funds borrowed by RCFL were pooled and transferred to various group companies and indirectly linked entities within the Reliance ADA group network.
Citing the forensic audit report, investigators claimed that nearly 68% of wholesale loans amounting to ₹11,218.58 crore were disbursed to entities categorised as 'potential indirectly linked entities' (PILE). These entities allegedly routed funds to related parties, while around 25% of the tracked funds were involved in circular transactions that eventually flowed back to RCFL.
The agency further alleged that such transactions violated Reserve Bank of India (RBI) guidelines applicable to non-banking financial companies (NBFCs) which prohibit banks from extending credit to subsidiaries or group entities.
According to the investigation, loan funds were first credited to RCFL accounts maintained with a private bank before being redistributed to companies allegedly linked to the ADA group.
Seeking custodial interrogation, CBI told the court that Mr Jhunjhunwala played a central role in the group's financial operations during the relevant period.
The agency alleged that as group MD, he oversaw corporate finance activities and interacted with chief executive officers (CEOs), chief financial officers (CFOs), chief risk officers (CROs) and directors across several Reliance ADA group companies.
Investigators claimed that he directed senior executives to sanction corporate loans to shell companies and interconnected entities despite repeated violations of lending norms and sanction conditions imposed by public sector banks.
CBI further alleged that electronic communications recovered during the investigation indicate Mr Jhunjhunwala instructed executives to route funds from Reliance Commercial Finance and Reliance Capital to other group entities.
According to investigators, many of the recipient companies had negligible assets, no significant business activity and few or no employees, yet received loans worth hundreds of crores of rupees that were allegedly never repaid.
The agency argued before the court that custodial interrogation was necessary to uncover the broader conspiracy, identify the ultimate beneficiaries of diverted funds, examine the role of public servants and confront the accused with electronic evidence and co-accused.
Mr Jhunjhunwala's lawyers, Mudit Jain and Jasmin Purani, opposed CBI's plea and argued that their client had been made a scapegoat.
The defence maintained that Mr Jhunjhunwala left the Reliance ADA group in 2019 and had no access to company records thereafter. They also pointed out that he had already been questioned more than a dozen times over the past month by multiple investigative agencies and had cooperated with the investigation.
After hearing both sides, special CBI judge JP Darekar granted the agency custody of Mr Jhunjhunwala until 12 June 2026.
The RCFL case is one among several investigations involving Reliance ADA group companies. CBI has informed the court that the broader probe is being monitored by the Supreme Court.
The agency has already registered multiple first information reports (FIRs) against RCom, Reliance Home Finance Ltd (RHFL), RCFL and Reliance Telecom Ltd, based on complaints from public sector banks and the Life Insurance Corporation of India (LIC).
Earlier this month, CBI arrested Mr Jhunjhunwala in the SBI-led RCom loan fraud case. Investigators alleged that he played a key role in obtaining loans from banks and overseeing the utilisation of borrowed funds.
The directorate of enforcement (ED) is also conducting a parallel money laundering investigation. In April, the ED arrested Amit Bapna, former CFO and chief operating officer (COO) of Reliance Capital, in connection with the same probe.
According to investigating agencies, the overall banking fraud under examination exceeds ₹40,000 crore, with more than ₹11,000 crore allegedly turning into non-performing assets (NPAs) before being diverted through a network of shell entities. Agencies are continuing efforts to trace the ultimate beneficiaries and recover assets linked to the alleged fraud.
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