Mumbai: The Central Bureau of Investigation (CBI) Tuesday filed the first charge sheet in the Reliance Commercial Finance Ltd (RCFL) case against seven accused, including two Reliance Group companies, for causing a loss of Rs 4,097 crore to public sector banks, according to a statement issued by the investigative agency.
The accused in the charge sheet, filed before the Special Judge for CBI cases, include Reliance Infrastructure Ltd and Reliance Home Finance Ltd (RHFL), and five former senior executives of RCFL, namely Devang Pravin Mody (Director &CEO), Ravindra Somayajula Rao (Director), Dhananjay Bhagwanprasad Tiwari (Director), Rajesh Krishnamoorthy (Executive Risk Officer), and Lav Chaturvedi (Chief Risk Officer), for offences of criminal conspiracy, cheating with intent to cause huge losses to public sector banks, the statement said.
The charge sheet is based on the investigation conducted by the CBI, which has revealed that funds borrowed by Reliance Commercial Finance Limited were diverted through intermediary and conduit entities to various Reliance ADA Group companies, in violation of the terms and conditions governing such borrowings, thereby causing wrongful loss to the lending banks and corresponding wrongful gain to the accused persons and related entities.
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The CBI had registered the case based on complaints received from Bank of Maharashtra and other public sector banks of the consortium. The total loss caused to 13 public sector banks of the consortium is Rs 4,097 crore.
Further investigation has been kept open to ascertain the role of other directors, entities and public servants involved in causing wrongful loss to the Public Sector Banks. Supplementary charge sheets are expected to be filed in due course, the statement said.
The CBI has so far arrested three accused persons in this case, namely Amitabh Jhunjhunwala, former Vice Chairman of Reliance Capital Ltd, Mody, former CEO of RCFL, and Amit Bapna, former Chief Financial Officer of Reliance Capital Ltd. Jhunjhunwala and Mody are presently in judicial custody, while Bapna is in CBI custody.
The agency has registered seven FIRs against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL) on the basis of complaints received from various public sector banks and LIC. The CBI had earlier filed its first charge sheet in the RCom case May 29, against 16 accused persons.
The present charge sheet is the second charge sheet filed in the Reliance ADA Group cases.
These cases are under investigation, and the investigation is being monitored by the Supreme Court. The CBI remains committed to conducting an expeditious and comprehensive investigation into these cases, the statement added.
