Mumbai — The Central Bureau of Investigation (CBI) has registered a case against Satish Seth and Gautam B. Doshi, former directors of Reliance Telecom Ltd., following allegations of cheating and criminal misconduct linked to bank loans.
The case stems from a complaint filed by the State Bank of India (SBI), which accused the company of causing a wrongful loss of ₹114.98 crore. According to officials, SBI was part of a consortium of 11 banks that had extended a total term loan facility of ₹735 crore to the telecom company.
Investigators said the complaint pointed to irregularities in how the funds were utilized, prompting the agency to initiate formal proceedings.
Charges Under Multiple Legal Provisions
The CBI has invoked provisions of criminal conspiracy and cheating under the Indian Penal Code, along with charges of criminal misconduct and abuse of official position under the Prevention of Corruption Act, 1988.
Officials familiar with the matter said the charges reflect the agency’s assessment that the alleged actions went beyond financial mismanagement, potentially involving deliberate wrongdoing in the handling of loan funds.
The case marks another instance of federal authorities pursuing allegations tied to corporate lending practices, an area that has drawn increased attention in recent years amid concerns over non-performing assets in the banking sector.
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Searches and Document Recovery
Following the registration of the case, CBI teams conducted searches at multiple locations in Mumbai, including the residences of the accused and the registered office of Reliance Telecom Ltd.
During these searches, officials said, investigators recovered documents related to the loan transactions under scrutiny. The materials are expected to form part of the evidence as the agency examines the flow and use of funds sanctioned under the consortium arrangement.
Authorities did not disclose further details about the nature of the documents or the specific transactions being examined.
Broader Scrutiny of Corporate Lending
The case emerges against the backdrop of ongoing efforts by Indian authorities to address irregularities in corporate borrowing and strengthen accountability in the banking system.
Consortium lending, where multiple banks jointly finance large projects, has historically played a central role in funding infrastructure and telecom ventures. However, such arrangements have also been susceptible to disputes over fund utilization and oversight.
Officials said the investigation will seek to determine the extent of responsibility of the accused in relation to the alleged loss reported by SBI, as well as any broader implications for the consortium of lenders involved.
