NEW DELHI: The Central Bureau of Investigation (CBI) on Tuesday filed its first chargesheet in the alleged ₹4,097-crore Reliance Commercial Finance Ltd (RCFL) bank fraud case before a special CBI court in Mumbai, naming seven accused, including Reliance Infrastructure Ltd, Reliance Home Finance Ltd (RHFL) and five former senior executives of RCFL.
The individuals chargesheeted are Devang Pravin Mody, former director and CEO of RCFL; Ravindra Somayajula Rao, former director; Dhananjay Bhagwanprasad Tiwari, former director; Rajesh Krishnamoorthy, former executive risk officer; and Lav Chaturvedi, former chief risk officer. They have been charged with criminal conspiracy and cheating for allegedly causing substantial losses to a consortium of public sector banks.
According to the CBI, its investigation found that funds borrowed by RCFL were allegedly diverted through intermediary and conduit entities to various companies of the Reliance ADA Group, in violation of the terms governing the borrowings. The agency alleged that the diversion resulted in a wrongful loss of ₹4,097 crore to a consortium of 13 public sector banks, while conferring corresponding wrongful gains on the accused and related entities.
The case was registered on the basis of complaints filed by the Bank of Maharashtra and other public sector banks that were part of the lending consortium.
The CBI said its investigation is continuing to determine the role of other directors, entities and public servants who may have been involved in the alleged fraud. It added that supplementary chargesheets are likely to be filed as the probe progresses.
