Special Mumbai Court Remands Former ADAG MD Amitabh Jhunjhunwala To CBI Custody Over Loan Scam

Mumbai, June 11, 2026: A special court in Mumbai has granted custody of former Reliance ADA Group Managing Director Amitabh Jhunjhunwala to the Central Bureau of Investigation (CBI) in connection with an ongoing probe into an alleged bank loan fraud involving Reliance Commercial Finance Limited (RCFL).

The case, which centers on alleged financial irregularities amounting to ₹4,097 crore, marks a significant development in one of the country’s major corporate lending investigations. Officials say the inquiry is focused on the utilization and movement of funds borrowed from a consortium of financial institutions.

Massive Borrowings Under Investigation

According to investigators, Reliance Commercial Finance Limited obtained loans and credit facilities exceeding ₹9,280 crore between 2014 and 2018 from a group of 31 banks, financial institutions, and other lenders.

The loan accounts were later classified as Non-Performing Assets (NPAs) in March 2020 after repayment obligations were allegedly not met. Following audits and complaints filed by multiple public sector banks, authorities estimated losses of approximately ₹4,097 crore linked to the defaulted accounts.

The CBI is examining whether funds were diverted in violation of lending agreements and whether key executives played a role in the alleged misuse of borrowed capital.

Allegations of Fund Diversion Through Shell Entities

During court proceedings, prosecutors argued that Jhunjhunwala occupied a central decision-making position within the corporate structure during the period under investigation.

The agency alleges that loans categorized for general business purposes were routed to companies that had limited operational activity and inadequate financial capacity. Investigators suspect that some of these entities functioned primarily as conduits for moving funds within a larger corporate network.

According to the prosecution, digital records, internal communications, and financial documents recovered during the investigation indicate possible violations of sanctioned loan conditions and banking norms.

Court Approves Custodial Interrogation

The Special CBI Court approved the agency’s request for custodial interrogation, allowing investigators additional time to question Jhunjhunwala regarding financial transactions, internal approvals, and the flow of funds.

Officials intend to compare his statements with electronic evidence, financial records, and testimonies gathered from other individuals connected to the case. Investigators are particularly focused on identifying the final beneficiaries of the disputed transactions and tracing the movement of funds across multiple entities.

Former Reliance Capital Chief Financial Officer Amit Bapna, who has also come under scrutiny in the investigation, is among those being examined as part of the broader inquiry.

Focus on Complex Corporate Structures

Financial crime experts note that large-scale corporate fraud investigations often involve intricate ownership networks, layered transactions, and multiple intermediary entities that can complicate efforts to trace money trails.

Authorities believe advanced forensic accounting, digital evidence analysis, and transaction mapping will be crucial in determining whether funds were intentionally diverted and identifying those responsible for key decisions.

Wider Probe Continues

The ongoing investigation forms part of a broader examination of financial irregularities linked to companies associated with the Reliance ADA Group. Agencies are also reviewing transactions and lending practices involving other group entities to determine whether similar patterns emerged elsewhere.

Defense representatives reportedly informed the court that Jhunjhunwala had stepped away from the group in 2019 and had cooperated with investigators. However, the court concluded that custodial questioning was necessary to facilitate the ongoing probe and ensure effective examination of financial records.

As the investigation progresses, authorities are expected to continue analyzing banking transactions, corporate communications, and related financial data to establish accountability and assess the full extent of the alleged fraud.