CBI arrests ex-RCFL, RHFL CEOs over ₹7,623 cr

What the CBI said on the arrests

The Central Bureau of Investigation (CBI) said it arrested former top executives of Reliance Commercial Finance Limited (RCFL) and Reliance Home Finance Limited (RHFL) on Monday as part of its probe into alleged diversion of bank loans. The agency pegged the alleged diversion at a combined ₹7,623 crore, involving multiple public sector banks. The arrests were made in separate investigations relating to RCFL and RHFL.

According to the CBI, the RCFL case involves an alleged loss of ₹4,097 crore to 13 banks. The RHFL case involves an alleged loss of ₹3,526 crore to 10 banks. The agency’s statement links both sets of allegations to lending practices and subsequent fund movements that investigators say did not follow the applicable conditions.

Who was arrested and their roles

The arrested individuals were identified as Devang Mody and Ravindra Sudhalkar, as per the CBI. Mody served as CEO of RCFL from April 2017 to December 2018. Sudhalkar served as Executive Director and CEO of RHFL between October 2016 and March 2022.

The CBI described Mody as a key decision-maker responsible for RCFL’s operations during his tenure. In Sudhalkar’s case, the agency said he managed RHFL’s operations and was responsible for key approvals. The CBI’s allegations in both cases focus on how loans were sanctioned and where the funds ultimately moved.

Allegations around lending to intermediary or conduit companies

Investigators claimed that Mody approved loans to intermediary and conduit companies even though such lending was allegedly contrary to RBI guidelines and sanction conditions tied to borrowings from public sector banks. The CBI said this was a central part of the alleged misconduct it is examining in the RCFL case.

For RHFL, the CBI said Sudhalkar similarly approved loans to intermediary and conduit companies. The agency’s statement indicates the pattern under scrutiny is comparable across both entities, with sanction decisions and subsequent fund flows being examined for compliance and intent.

Alleged diversion to Reliance ADA Group entities

The CBI said its investigation revealed that funds borrowed by RCFL and RHFL were allegedly diverted to Reliance ADA Group companies. It specifically named Reliance Capital Ltd., Reliance Infrastructure Ltd., and Reliance Power Ltd. as recipients in the narrative of alleged diversion.

According to the agency, this diversion resulted in a combined wrongful loss of ₹7,623 crore to lending banks, along with a corresponding wrongful gain to the accused and related entities. The CBI framed the allegations in terms of both bank losses and alleged benefits to connected parties.

Scale of the probe: FIRs, lenders and oversight

The CBI said it has registered seven FIRs against Reliance Communications Limited (RCom), Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL) and Reliance Telecom Limited (RTL), based on complaints received from various banks and LIC. The agency also stated that the investigation in these cases is being monitored by the Supreme Court.

The agency said it has so far arrested five persons in the Reliance ADA Group cases. The arrests announced on Monday add to a broader set of enforcement actions that have unfolded through multiple complaints and parallel proceedings.

Enforcement Directorate case and the July 1 court date

Separately, the Enforcement Directorate (ED) filed a Prosecution Complaint (charge sheet) against two former senior executives of Reliance (ADAG) group companies, including Amitabh Jhunjhunwala and Amit Bapna, among others. The text states they were arrested in April 2026 in connection with an alleged bank loan fraud and money laundering case involving RHFL and RCFL.

The charge sheet names 55 accused individuals and is set to be presented for consideration before the concerned judge on July 1. The narrative also notes that Special Judge Hasan Anzar had remanded Jhunjhunwala and Bapna to judicial custody after ED interrogation.

ED’s allegations: shell companies and “proceeds of crime” claim

The ED alleged a premeditated and well-planned scheme to divert public funds from RHFL and RCFL using shell and paper companies controlled by the Reliance Anil Ambani Group. The stated allegation is that this was done under the pretext of corporate loans, with banks, shareholders, investors and public institutions cited as affected parties.

The text also includes specific numbers linked to RHFL’s default and recovery: RHFL defaulted on ₹7,523.46 crore, with ₹2,116.28 crore recovered, and the remaining ₹5,407.18 crore claimed to be proceeds of crime. The ED’s money laundering case is described as stemming from FIRs filed by the CBI.

Earlier bank-fraud complaints: Union Bank and Bank of Maharashtra

A separate portion of the provided text refers to CBI registration of two cases against RHFL and RCFL for allegedly defrauding Union Bank of India and Bank of Maharashtra. The amounts cited are ₹228.06 crore and ₹57.47 crore, respectively.

It also states that RHFL had availed loans of ₹5,572.35 crore from 18 banks and financial institutions, while RCFL availed loans of ₹9,280 crore from 31 banks and financial institutions. Another figure cited is alleged loan defaults worth ₹14,852 crore being under scanner, as per officials referenced in the text.

Searches and named individuals in the December 2025 action

The text says the CBI obtained search warrants from a Mumbai CBI court and commenced searches on 09.12.2025 at two official premises of RHFL and residential premises linked to Jai Anmol Ambani (described as the then director of RHFL) and Ravindra Sudhalkar (described as ex-CEO and whole-time director of RHFL). The agency said it observed incriminating documents and that seizures were underway during searches.

The material also states that in the Union Bank complaint, Jai Anmol Anil Ambani and Ravindra Sharad Sudhalkar were alleged to be in charge of and responsible for day-to-day affairs and business decisions during the relevant period. The FIR is described as including allegations of criminal conspiracy, cheating, and criminal misconduct.

Key figures at a glance

Timeline of key actions mentioned

Why the developments matter for lenders and governance scrutiny

The figures cited by the CBI and ED place the focus on how lender-funded borrowing was sanctioned, tracked, and allegedly redirected through intermediary entities. The CBI’s framing hinges on alleged violations of RBI guidelines and sanction conditions, which typically influence how banks assess end-use and monitor exposures.

The broader set of FIRs, the mention of complaints from multiple public sector banks and LIC, and the note that the investigation is being monitored by the Supreme Court underscore the multi-agency and multi-complaint nature of the probe. The next procedural milestone explicitly stated in the text is the ED charge sheet being listed for consideration on July 1.