CBI arrested former RCFL CEO Devang Mody and former RHFL CEO Ravindra Sudhalkar in connection with an alleged ₹7,623-crore bank fraud involving 23 public sector banks.
Investigators allege the executives approved loans to intermediary companies in violation of RBI and NHB norms, resulting in losses of ₹4,097 crore in the RCFL case and ₹3,526 crore in the RHFL case.
The CBI claims funds were diverted to Reliance ADA Group companies, including Reliance Capital, Reliance Infrastructure and Reliance Power, and has so far registered seven FIRs and arrested five individuals
ON MONDAY, JUNE 22, 2026, the Central Bureau of Investigation (CBI) arrested two former senior executives of the Reliance Anil Dhirubhai Ambani Group in connection with an alleged bank fraud case involving the diversion of public funds. According to the agency, the alleged fraud caused a cumulative wrongful loss of ₹7,623 crore to public sector banks.
The two arrested individuals are Devang Mody, former Director and CEO of Reliance Commercial Finance Limited (RCFL), and Ravindra Sudhalkar, former Executive Director and CEO of Reliance Home Finance Limited (RHFL). The arrests were made as part of an ongoing CBI investigation into alleged large-scale financial irregularities in lending practices involving multiple banks.
According to the CBI, the RCFL case resulted in an alleged loss of ₹4,097 crore to 13 public sector banks, while the RHFL case caused losses amounting to ₹3,526 crore to 10 public sector banks. Combined, the two cases resulted in a total loss of ₹7,623 crore to 23 public sector banks.
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The agency said that Devang Mody, who served as CEO of RCFL from April 2017 to December 2018, was a key decision-maker responsible for managing the company's operations.
A CBI spokesperson said in a statement, "He approved loans to intermediary and conduit companies despite being aware that such lending was contrary to RBI guidelines and the sanction conditions governing borrowings from Public Sector Banks."
Similarly, Ravindra Sudhalkar, who headed Reliance Home Finance Limited (RHFL) as its Executive Director and CEO between October 2016 and March 2022, is also under the CBI scanner. The agency alleged that he approved loans to intermediary and conduit companies despite such lending being against the company's own policies and in violation of NHB and RBI guidelines. The loans also allegedly breached conditions attached to borrowings from public sector banks.
The CBI investigation further alleged that funds borrowed by RCFL and RHFL were diverted to other Reliance ADA Group companies, including Reliance Capital Limited, Reliance Infrastructure Limited, and Reliance Power Limited. According to the agency, this alleged diversion of funds caused heavy losses to the lending banks.
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The CBI has registered seven FIRs in connection with various Reliance ADA Group entities, including Reliance Communications Limited (RCom), Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), and Reliance Telecom Limited (RTL). These FIRs were filed based on complaints received from several public sector banks and the Life Insurance Corporation of India (LIC).
So far, the agency has arrested five individuals in cases linked to the Reliance ADA Group investigations. The CBI also filed its first chargesheet in the Reliance Communications case on May 29, 2026, against 16 accused persons, including the company itself, five senior executives of Reliance Communications, and 10 bank officials.
The ongoing CBI investigation covers multiple alleged instances of loan diversion, regulatory violations, and financial misconduct across several Reliance ADA Group entities. Further investigation in the case is underway.
(Edited by Harsh Pandey)
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