The Central Bureau of Investigation (CBI) has filed its first chargesheet in the alleged ₹4,097 crore bank fraud involving Reliance Commercial Finance Limited (RCFL), marking a significant development in one of India’s high-profile financial crime investigations. The chargesheet, submitted before a Special CBI Court in Mumbai on Monday, names seven accused, including two Reliance Group companies and five former senior officials of RCFL, as investigators intensify scrutiny into the alleged diversion of bank funds.
According to the CBI, the accused include Reliance Infrastructure Limited, Reliance Home Finance Limited (RHFL), former RCFL Director and Chief Executive Officer Devang Pravin Modi, former Director Ravindra Somayajula Rao, former Director Dhananjay Bhagwanprasad Tiwari, Executive Risk Officer Rajesh Krishnamurthy, and Chief Risk Officer Lav Chaturvedi. The agency alleges that these individuals and entities played key roles in a scheme that diverted bank loans in violation of lending conditions.
Investigators claim that RCFL obtained loans from a consortium of public sector banks but subsequently routed substantial portions of those funds through intermediary and conduit companies before transferring them to various firms belonging to the Reliance ADA Group. The CBI alleges that these transactions violated agreed loan terms and ultimately caused significant financial losses to lending banks while providing undue financial benefits to related corporate entities.
The investigation originated from a complaint filed by a consortium led by Bank of Maharashtra. According to the agency, 13 public sector banks collectively suffered losses amounting to ₹4,097 crore because of the alleged diversion of funds. The case has become one of the largest banking fraud investigations involving the Reliance ADA Group and highlights continuing concerns over corporate governance, lending oversight, and the monitoring of large corporate loans within India’s banking sector.
The CBI stated that investigators have already arrested three individuals in connection with the case. They include former Reliance Capital Vice Chairman Amitabh Jhunjhunwala, former RCFL CEO Devang Pravin Modi, and former Reliance Capital Chief Financial Officer Amit Bapna. Amitabh Jhunjhunwala and Devang Modi remain in judicial custody, while Amit Bapna is currently in CBI custody as investigators continue questioning him regarding the financial transactions under scrutiny.
Officials said the investigation remains far from complete. The agency is examining the roles of additional directors, associated companies, and public servants who may have been connected with the alleged fund diversion. Investigators indicated that supplementary chargesheets would be filed as fresh evidence emerges and additional findings are verified during the course of the probe.
The latest filing also represents another major legal action involving companies linked to the Reliance ADA Group. Earlier, on May 29, 2026, the CBI filed its first chargesheet in the Reliance Communications (RCom) loan fraud case. Together, the two investigations reflect the agency’s broader examination of financial transactions involving companies within the group and its efforts to determine whether lending norms were systematically violated.
Financial fraud cases of this scale attract close attention because they directly affect public sector banks, many of which manage deposits belonging to millions of ordinary citizens. Large loan defaults and alleged fund diversions not only weaken bank balance sheets but also increase pressure on the broader financial system. Regulatory authorities have repeatedly stressed the importance of stronger corporate governance, stricter risk management, and improved due diligence to prevent similar cases from occurring in the future.
The CBI has maintained that its investigation is continuing and that further evidence will determine whether additional individuals or corporate entities should face prosecution. As forensic examination of financial records progresses and investigators trace the movement of funds across multiple companies, the case is expected to remain under close legal and regulatory scrutiny in the coming months. The proceedings before the Special CBI Court in Mumbai will now determine the next phase of one of the country’s most closely watched banking fraud investigations.