The Central Bureau of Investigation has filed its first chargesheet in the Reliance Home Finance Limited (RHFL) bank fraud case, according to reports from Business Standard. The chargesheet was filed on Thursday before a special court in Mumbai against four accused in the alleged ₹3,526 crore bank fraud case. This development represents a significant milestone in the ongoing investigation into alleged financial irregularities within the commercial finance sector.
The chargesheet specifically targets Reliance Home Finance Limited (RHFL) and Reliance Capital Ltd, as reported by Business Standard. The CBI has charged four accused persons: RHFL (company), Ravindra Sudhalkar (Executive Director & CEO), Krishanan Gopalakrishnan Iyer (Chief Risk Officer), and Dhananjay Bhagwanprasad Tiwari (Chief Credit & Risk Officer). The agency's investigation showed that funds borrowed by RHFL were diverted through intermediary and conduit entities to various Reliance ADA Group companies, causing wrongful loss to lending banks. The chargesheet specifically alleges offences of criminal conspiracy, cheating with intent to cause huge losses to Public Sector Banks.
The investigation revealed that RHFL caused a total loss of ₹3,526.35 crore to a consortium of 10 public sector banks through fund diversion, as reported by the CBI. The CBI registered the case based on complaints received from Union Bank of India and other PSU banks of the consortium. The agency has kept the investigation open into the alleged role of directors, entities and public servants involved in causing wrongful loss to public sector banks and is likely to file supplementary chargesheets.
The CBI has arrested Ravindra Sudhalkar (former director of RHFL) and Amit Bapna (former CFO of Reliance Capital Ltd) in connection with the case. Both accused are presently in judicial custody, according to the CBI spokesperson. The probe into the role of Sudhalkar and Bapna is still ongoing. The CBI 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 the LIC.
The Supreme Court is monitoring investigations in these cases, according to Business Standard. 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, with supplementary chargesheets expected to be filed in due course. The CBI's investigation shows that funds borrowed by RHFL 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.
