New Delhi: The Central Bureau of Investigation (CBI) on Monday arrested the former group managing director of Reliance Communications as part of a probe into allegations of diversion of loan funds from the State Bank of India (SBI).
The accused, identified as Amitabh Jhunjhunwala, was already in judicial custody after his arrest by the Enforcement Directorate in a money laundering case linked to a CBI case.
He was lodged at Delhi’s Tihar jail before the CBI secured his custody on the orders of a Special CBI court in Mumbai and was sent to Arthur Road Jail. The agency will move the application for his custodial remand on Tuesday, officials said.
An agency spokesperson said that, in his capacity as the group managing director of Reliance Communications, he was overseeing key functions such as corporate finance, banking, and the utilisation of loan funds.
Moreover, the spokesperson said that his directions were critical to the utilisation of loan funds by entities of the Reliance Anil Dhirubhai Ambani Group.
“He coordinated with senior formations of the bank for loans/advances. Based on his directions, loan funds received from the banks were managed/utilised by other officials of the RCom group. It is alleged that, due to the misutilisation of loan funds, the banks incurred wrongful losses. He was instrumental in getting loans from various banks. As the company did not repay the amounts, the accounts have become NPAs,” the spokesperson said.
The agency also alleged that he was working on the instructions of the promoters and directors of Reliance Communications and other group companies.
The agency’s action on Monday stemmed from an FIR filed against Reliance Communications and its former MD, Anil Ambani, in August. The FIR was filed on the complaint of SBI, which alleged that Ambani and his firm caused the bank a loss of Rs 2,929.05 crore.
The agency also questioned Ambani earlier this year in the same case.
The CBI has filed seven FIRs related to allegations of diversion of loan funds by a consortium of banks.
Jhunjhunwala’s arrest comes days after the CBI filed its first chargesheet in the cases related to the alleged loan diversion and fraud committed by the Reliance Anil Dhirubhai Group of companies.
Earlier last week, the agency charged 16 accused, including Reliance Communications, five senior RCom executives and 10 bank officials of the State Bank of India and Bank of Maharashtra, and the erstwhile Syndicate Bank, for offences of criminal conspiracy, cheating, criminal misappropriation under the IPC, and criminal misconduct under the Prevention of Corruption Act.
The chargesheet covered the alleged misuse of a Rs 1,200-crore Term Loan sanctioned by State Bank of India, Rs 500-crore Letter of Credit facilities sanctioned by Bank of Maharashtra, and Rs 350-crore Letter of Credit facilities sanctioned by the erstwhile Syndicate Bank, the agency spokesperson had said.
(Edited by Sugita Katyal)
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