Mumbai: A special CBI court in Mumbai has remanded Amitabh Jhunjhunwala, former Group Managing Director of Reliance Communications, to the custody of the Central Bureau of Investigation till June 5 in connection with an alleged bank loan fraud case involving losses of more than ₹2,929 crore to lenders.
Custody Granted for Further Questioning
Jhunjhunwala was produced before the special court after his arrest earlier this week. The CBI sought his custodial interrogation, arguing that it needed to question him about the alleged diversion and use of loan funds sanctioned by a consortium of banks.
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The agency told the court that further questioning was required to establish the flow of funds, examine decision-making within the company and determine the role of senior executives in the alleged misuse of bank loans. The court accepted the submissions and granted the agency custody till June 5.
The case stems from a complaint filed by the State Bank of India, which alleged that Reliance Communications and its promoters caused substantial losses to the banking system through diversion of sanctioned loans and violations of lending conditions.
Loans From Public Sector Banks Under Scrutiny
According to investigators, a consortium led by SBI had extended rupee term loans to Reliance Communications over several years. The total exposure of lenders in the case is estimated at ₹19,694.33 crore and involved 17 public sector banks.
The complaint alleged that part of the sanctioned funds was not used for the purposes for which the loans had been granted, resulting in losses to lending institutions.
CBI officials have alleged that Jhunjhunwala played a central role in the company’s financial operations during his tenure as Group Managing Director. The agency claims he handled key areas including corporate finance, banking relationships, fund management and utilisation of loan proceeds.
Investigators are examining financial records, internal communications, banking transactions and corporate approvals to determine whether loan funds were diverted from their intended objectives.
Probe Enters Crucial Phase
Jhunjhunwala’s arrest came after he was brought to Mumbai on a production warrant. He had been lodged in Delhi’s Tihar Jail in connection with a separate money laundering investigation by the Enforcement Directorate.
Last week, the CBI filed its first chargesheet in the case against 16 accused persons. Jhunjhunwala was not named in the initial chargesheet, but investigators said further inquiry and evidence collection were continuing.
The allegations remain under investigation, and no court has determined the guilt or innocence of the accused. With the CBI now obtaining custody of one of the company’s former top executives, the probe is expected to focus on financial transactions, fund movement, corporate approvals and the decision-making process linked to the alleged bank fraud.
