RCOM Fraud Probe: CBI Questions Top Ex-Executives in ₹2,929 Cr Case

Introduction

The Central Bureau of Investigation (CBI) has escalated its probe into the alleged multi-crore bank fraud involving Reliance Communications (RCOM), a former flagship company of the Anil Ambani-led Reliance Group. The agency recently questioned three former top-tier executives in connection with a complaint filed by the State Bank of India (SBI), signaling a significant development in a case that scrutinizes years of financial transactions and lending practices.

Senior Management Under Scrutiny

In a coordinated move, the CBI summoned Satish Seth and Gautam Doshi, both former group managing directors of the Reliance ADA Group, for examination at its Delhi headquarters on March 21, 2026. This followed the questioning of another former group managing director, Amitabh Jhunjhunwala, on March 18, 2026. All three individuals were central figures in the group's leadership for over 15 years. Seth previously served as vice-chairman at Reliance Infrastructure and was on the board of Reliance Telecom Ltd (RTL), alongside Doshi. Jhunjhunwala was the vice-chairman of Reliance Capital. The questioning of these long-time confidants of the group indicates the investigation is focusing on the decision-making processes during the period of the alleged fraud.

The Core Allegations by SBI

The investigation stems from an FIR registered by the CBI on August 21, 2025, following a formal complaint from SBI, the lead bank in a consortium of 17 public sector lenders. The complaint alleges a fraud of ₹2,929 crore by RCOM. According to a forensic audit report cited by the CBI, the company engaged in large-scale diversion and misuse of loan funds between 2013 and 2017. The funds were allegedly moved through a web of interlinked and circuitous transactions among various group entities. This resulted in a wrongful loss of ₹2,929 crore to SBI out of a total exposure of ₹19,694 crore from the consortium.

A Multi-Agency Investigation

The RCOM case is not limited to the CBI. The Enforcement Directorate (ED) is conducting a parallel investigation into potential money laundering linked to the alleged bank fraud, which is estimated to exceed ₹40,000 crore in total. The ED has also questioned Anil Ambani on multiple occasions, most recently on February 26, 2026. As part of its probe, the ED arrested Punit Garg, a former president of RCOM, in January 2026 and attached Ambani's 'Abode' property, valued at ₹3,716 crore, under the Prevention of Money Laundering Act (PMLA).

Details of Alleged Fund Diversion

The ED's investigation into former RCOM director Punit Garg has revealed specific instances of alleged fund misuse. The agency claims that Garg used company funds to pay for his daughters' university fees in the United States, amounting to over $10,000. It is also alleged that he disposed of a Manhattan apartment owned by an RCOM subsidiary and routed ₹70 crore from the sale to the UAE through sham agreements. These actions allegedly took place while the Reliance Group was undergoing insolvency proceedings, highlighting serious concerns about corporate governance.

Multiple Cases and Lenders

The financial troubles of the Reliance ADA Group have led to multiple legal challenges from various lenders. Apart from the SBI-led case, the CBI registered a fresh case on February 24, 2026, based on a complaint from Bank of Baroda, alleging a loss of over ₹2,220 crore due to loan diversion by RCOM. Separately, the CBI filed a chargesheet in September 2025 in a case involving Yes Bank, alleging a criminal conspiracy between its former chief Rana Kapoor and Anil Ambani. This resulted in a wrongful loss of nearly ₹2,797 crore to Yes Bank through what the agency described as a quid-pro-quo arrangement.

Key Financial Allegations at a Glance

Company's Position and Legal Proceedings

When contacted regarding the questioning of its former executives, the Reliance group declined to comment, stating the officials were no longer with the company. In a statement issued in 2025, a spokesperson for Anil Ambani noted that the SBI complaint pertained to matters over a decade old and that Ambani was a non-executive director with no role in daily operations at the time. The statement also emphasized that the matter is sub judice before the National Company Law Tribunal (NCLT) and other judicial forums, including the Supreme Court.

Market and Industry Impact

The extensive investigations into RCOM and other group companies have significant implications for the Indian banking sector. The case underscores the challenges of corporate lending, risk assessment, and the recovery of non-performing assets (NPAs). RCOM's account was declared an NPA in 2017, and the sheer scale of the outstanding dues to a consortium of banks highlights the systemic risks involved. The outcome of these probes will be closely watched for its potential impact on corporate governance standards and accountability for high-value loan defaults.

Conclusion

The ongoing investigations by the CBI and ED into Reliance Communications represent one of the most high-profile corporate fraud cases in India. The recent questioning of former top executives suggests that the agencies are meticulously working to uncover the trail of funds and establish accountability. As the legal proceedings continue across multiple forums, the focus remains on the actions of the company's leadership and the mechanisms that led to substantial losses for the banking system. Further developments are expected as both agencies continue to examine the complex financial transactions at the heart of the case.