CBI files first RCFL chargesheet in 2026: ₹4,097-cr loss

What the CBI filed and why it matters

The Central Bureau of Investigation (CBI) on Tuesday, July 7, 2026, filed its first chargesheet in the Reliance Commercial Finance Limited (RCFL) case. The chargesheet was submitted before a special court in Mumbai, according to officials cited in the reports. The case relates to alleged diversion and misuse of borrowed funds, with the CBI alleging a criminal conspiracy and fraud. The agency has pegged the alleged loss in the RCFL matter at ₹4,097 crore, borne by a consortium of 13 public sector banks (PSBs). Two Reliance group companies, Reliance Infrastructure Limited and Reliance Home Finance Limited (RHFL), have been named as accused entities in the chargesheet.

For investors and lenders, the filing is a procedural milestone that signals the investigation has moved from inquiry to formal prosecution in at least one part of the wider set of cases. The allegations also bring renewed attention to credit discipline, end-use monitoring of bank borrowings, and governance practices in group structures. The CBI has indicated that the probe is not over and that more names could be added later.

Who has been named in the chargesheet

The chargesheet lists seven accused in total. It includes two companies from the Reliance group: Reliance Infrastructure Limited and Reliance Home Finance Limited (RHFL). It also names five former senior officials of RCFL.

According to the CBI statement carried in the reports, the five former RCFL officials are: Devang Praveen Mody (Director and Chief Executive Officer), Ravindra Somayajula Rao (Director), Dhananjay Bhagwanprasad Tiwari (Director), Rajesh Krishnamurthy (Executive Risk Assessment Officer), and Lav Chaturvedi (Chief Risk Assessment Officer). The allegations against them include criminal conspiracy and cheating, with the stated intent of causing large losses to public sector banks. The filing is described as the first chargesheet in this RCFL-linked matter.

Core allegation: loan funds diverted through intermediaries

The CBI has alleged that funds borrowed by RCFL were diverted through intermediary and conduit entities to various companies within the Reliance Anil Dhirubhai Ambani (ADA) group. The agency’s position, as reported, is that such movements of funds breached the conditions tied to the borrowings. In the agency’s framing, the diversion led to wrongful loss to the lending banks and wrongful gain to the accused and related entities.

The reports also state that loans were allegedly sanctioned to intermediary entities, and that this structure was then used to route money further. In one of the related write-ups, the agency has linked the lending and diversion to conduct that was contrary to internal lending policies and to regulatory guidelines referenced in the text, including NHB and RBI guidelines, along with conditions governing borrowings from PSBs.

How the case began: complaints by banks

The RCFL case was registered by the CBI on the basis of complaints from the Bank of Maharashtra and other members of a 13-bank consortium. The CBI has stated that the total alleged financial loss in the RCFL case is ₹4,097 crore. The matter is framed as a bank-fraud and fund-diversion investigation involving public sector lenders.

In the broader set of Reliance ADA group-linked investigations referenced in the supplied material, the CBI has also registered seven FIRs against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL). These FIRs were based on complaints received from various PSBs and the Life Insurance Corporation of India (LIC), according to the reports.

Ongoing probe and the prospect of supplementary chargesheets

The CBI has said further investigation is ongoing to identify the role of additional directors, entities, and public officials. It also stated that supplementary chargesheets are expected to be filed in the future. This indicates that the July 7 filing may be only the first stage of prosecution in the RCFL matter.

The agency’s wording, as carried in the report, points to an expanding inquiry that could cover more individuals and organisations linked to the alleged diversion chain and decision-making. For the banking system, the trajectory of supplementary filings can matter because it may clarify accountability across borrowers, intermediaries, and potential enablers.

Arrests and custody status cited in the reports

The supplied text says the CBI has apprehended three individuals in relation to this case. These are Amitabh Jhunjhunwala (Vice-Chairman of Reliance Capital Limited), Devang Mody, and Amit Bapna (Chief Financial Officer of Reliance Capital Limited). As per the report, Jhunjhunwala and Mody are in judicial custody, while Bapna is in CBI custody.

Separately, other reports referenced in the provided material also describe arrests in related investigations involving RCFL and RHFL. One report states that the CBI arrested Devang Mody and Ravindra Sudhalkar (former Executive Director and CEO of RHFL) in connection with separate cases. Those reports also mention Mody’s tenure as RCFL CEO from April 2017 to December 2018, and Sudhalkar’s tenure at RHFL from October 2016 to March 2022.

The wider picture: RCFL and RHFL loss figures cited

The documents included in the prompt also reference an RHFL-linked case with a separate alleged loss figure. As stated in the reports, the RCFL case involves an alleged loss of ₹4,097 crore to 13 PSBs, while the RHFL case involves an alleged loss of ₹3,526 crore to 10 PSBs. Together, the combined impact cited is ₹7,623 crore.

While the July 7 filing is described as the first chargesheet in the RCFL case, the presence of multiple FIRs and parallel investigations highlights that the legal and investigative process spans more than one Reliance ADA group entity. The numbers cited across cases provide the context for why lenders and regulators closely track each step, including chargesheets, arrests, and supplementary filings.

Key facts at a glance

Market impact: what changes for lenders and investors

The immediate market relevance is less about day-to-day business performance and more about legal, governance, and contingent-risk monitoring. The chargesheet adds procedural clarity on the CBI’s allegations and the set of accused it is moving against in court. For banks, the reported loss number of ₹4,097 crore in the RCFL case provides a defined reference point for the alleged exposure tied to the specific set of transactions under investigation.

For investors tracking Reliance group-linked listed entities, the filing is a reminder that multiple investigations are active, including FIRs involving other companies named in the reports. However, the provided material does not quantify any stock-price move, provisioning impact, or recovery progress, and those should be assessed only from official disclosures and bank financial statements.

Why the development matters: governance and credit controls

The case narrative presented by the agency focuses on the end-use of borrowings, the role of intermediary entities, and the alleged breach of borrowing conditions. These are recurring fault lines in large credit events, where lenders expect funds to be deployed in line with stated purposes and within covenants. The reported mention of lending contrary to internal policy and guidelines underscores why credit committees, risk functions, and audit trails become central in such probes.

The CBI’s statement that supplementary chargesheets are anticipated also matters because it implies the investigation may still be mapping the full set of approvals, beneficiaries, and any public officials involved. The pace and scope of future filings will likely shape how the case is ultimately understood and litigated.

Conclusion

The CBI’s first chargesheet in the RCFL case, filed on July 7, 2026, names two Reliance group companies and five former RCFL officials, and pegs the alleged PSB loss at ₹4,097 crore. The agency alleges that borrowed funds were diverted through intermediary entities to Reliance ADA group companies, violating borrowing terms. With the CBI stating that further investigation is ongoing and supplementary chargesheets are expected, the next set of court filings and investigative actions will be the key confirmed milestones to track.