The Central Bureau of Investigation (CBI) has initiated legal action against Reliance Telecom Ltd., its former Directors Satish Seth and Gautam B. Doshi, as well as unidentified public officials and others, over an alleged bank fraud case involving State Bank of India (SBI) worth Rs 114.98 crore. Charges of criminal conspiracy and cheating under the Indian Penal Code have been pressed, along with offenses related to criminal misconduct and abuse of official position under the Prevention of Corruption Act, 1988. The case stems from a complaint filed by SBI, accusing the entities and individuals of defrauding the bank, leading to significant financial harm.
The CBI’s case follows a complaint by SBI, claiming that the accused parties swindled the bank, resulting in substantial financial losses. SBI was part of a group of 11 banks that collectively approved a term loan facility of Rs 735 crore for Reliance Telecom Ltd. Post the case registration, the CBI carried out searches at various locations in Mumbai, including the residences of Seth and Doshi, and the registered office of Reliance Telecom Ltd. Numerous documents related to loan transactions and financial activities have been seized during the searches.
The investigative agency is set to examine banking records, correspondences, and internal approvals associated with the loan disbursement. Further steps will be determined based on the discoveries of the ongoing probe. Searches are ongoing, with officials indicating the possibility of gathering more evidence as the investigation progresses.
Amidst a series of inquiries into alleged financial irregularities involving companies linked to the Reliance Group, the recent action by CBI is part of a broader investigation. Earlier this month, CBI interrogated Reliance Group Chairperson Anil Ambani for nearly eight hours regarding a separate SBI complaint involving an alleged Rs 2,929 crore fraud related to Reliance Communications (RCom). The case revolves around the alleged misuse of loan funds and transactions breaching lending terms. The bank had previously flagged these accounts as fraudulent, leading to investigative measures, including searches at company premises and residences of key individuals.
