CBI Files First Chargesheet in ₹4,097 Crore RCFL Loan Fraud, Five Former Executives Named

The Central Bureau of Investigation (CBI) on Tuesday filed its first chargesheet in the Reliance Commercial Finance Ltd (RCFL) loan fraud case, accusing five former senior executives and two Reliance Group companies of allegedly causing a wrongful loss of ₹4,097 crore to a consortium of 13 public sector banks through diversion of funds.

The chargesheet, filed before a special court in Mumbai, names former RCFL Director and CEO Devang Pravin Mody , directors Ravindra Somayajula Rao and Dhananjay Bhagwanprasad Tiwari , Executive Risk Officer Rajesh Krishnamoorthy , and Chief Risk Officer Lav Chaturvedi . It also names Reliance Infrastructure Ltd and Reliance Home Finance Ltd (RHFL) as accused.

According to the CBI, its investigation found that funds borrowed by RCFL were diverted through intermediary and conduit entities to various Reliance ADA Group companies , allegedly violating the terms of the borrowings. The agency said the diversion resulted in significant losses to the lending banks while conferring wrongful gains on the accused and related entities.

The case was registered following complaints from Bank of Maharashtra and other members of the lending consortium. The CBI said the investigation remains open and is examining the role of additional directors, entities and public servants, with supplementary chargesheets likely .

The agency had earlier arrested former Reliance Capital Vice Chairman Amitabh Jhunjhunwala , former RCFL CEO Devang Pravin Mody , and former Reliance Capital CFO Amit Bapna . While Jhunjhunwala and Mody are in judicial custody, Bapna remains in CBI custody.

The RCFL case is among seven FIRs registered by the CBI against Reliance Group entities, including Reliance Communications Ltd (RCom), Reliance Home Finance Ltd, RCFL and Reliance Telecom Ltd , based on complaints from public sector banks and LIC.