The CBI has arrested Amitabh Jhunjhunwala, a top executive of Reliance Communication Group, for allegedly causing a loss exceeding 6,000 crore to a consortium of banks led by SBI. Jhunjhunwala, who served as the Group Managing Director of Reliance Communications group, was involved in key financial functions like corporate finance and banking.
He worked closely with senior bank officials to secure loans and oversee their utilization within the Rcom group, leading to alleged mismanagement of funds and resulting in significant losses for the banks. Jhunjhunwala’s actions reportedly contributed to the accumulation of non-performing assets (NPAs) as the company failed to repay the borrowed amounts.
The CBI initiated an FIR based on a complaint from the State Bank of India, accusing Reliance Communications Limited and Anil D. Ambani of causing a loss amounting to Rs. 2,929.05 crore to the bank. Term loans granted to RCom by an 11-bank consortium, with SBI at the helm, resulted in a collective loss of 6,015 crores.
Multiple FIRs have been registered by the CBI against RCom, RHFL, RCFL, and RTL following complaints from public sector banks and LIC. These cases are currently under investigation, with oversight from the Supreme Court. Jhunjhunwala, who was previously in judicial custody in a separate case, has now been remanded to judicial custody in the RCom case by the CBI.
