CBI arrests two former Reliance executives in Rs 7,623 crore bank loan diversion case

New Delhi: The Central Bureau of Investigation on Monday arrested Devang Mody, former Director and CEO of Reliance Commercial Finance Limited (RCFL), and Ravindra Sudhalkar, former Executive Director and CEO of Reliance Home Finance Limited (RHFL), in connection with the ongoing probe into Reliance ADA Group cases involving alleged diversion of bank loans.

According to the CBI, the two former executives are accused of causing a combined wrongful loss of Rs 7,623 crore to public sector banks. In the RCFL case, the agency said the accused caused a loss of Rs. 4097 crores to 13 Public Sector Banks (PSBs). In the RHFL case, the loss amount is Rs. 3526 crores to 10 PSBs.

Investigation has revealed that Devang Mody, who served as CEO of RCFL from April 2017 to December 2018, was a key decision-maker responsible for managing the operations of the company. The CBI said he approved loans to intermediary and conduit companies despite being aware that such lending was contrary to RBI guidelines and the sanction conditions governing borrowings from Public Sector Banks.

For RHFL, investigation has also revealed that Ravindra Sudhalkar served as ED and CEO during the period 01.10.2016 to 31.03.2022 and was a key decision-maker responsible for managing the operations of Reliance Home Finance Limited. The agency alleged he approved loans to intermediary and conduit companies despite such lending being contrary to the company's lending policies, NHB/RBI guidelines and the conditions governing borrowings from Public Sector Banks.

The CBI further said investigation revealed that the accused persons diverted funds borrowed by RCFL and RHFL to Reliance ADA Group companies, including Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd., thereby causing a combined wrongful loss of Rs 7,623 crore to the lending banks and corresponding wrongful gain to themselves and related entities.

It may be recalled that the CBI has registered seven FIRs against Reliance Communications Limited (RCom), Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL) and Reliance Telecom Limited (RTL) based on complaints received from various Public Sector Banks and LIC. These cases are under investigation and are being monitored by the Hon'ble Supreme Court.

The CBI filed its first chargesheet in the RCom case on 29.05.2026 against 16 accused persons, including the company, five senior executives of RCom and ten bank officials. With the latest arrests, the CBI has so far arrested 05 persons in Reliance ADA Group cases, including Mody and Sudhalkar. Further investigation is continuing.