A special court here on Wednesday remanded Amitabh Jhunjhunwala, former Managing Director of the Anil Dhirubhai Ambani Group, in CBI custody till June 12 in another alleged bank fraud case involving Reliance Commercial Finance Limited.
Jhunjhunwala was earlier in judicial custody in a case based on State Bank of India's complaint against Anil Ambani-led Reliance Communications Limited for allegedly causing a loss of Rs 2,929.05 crore.
On Wednesday, he was produced before a special CBI court judge J P Darekar, and the central agency sought his custody in the case linked to RCFL.
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According to the CBI, RCFL, its directors, and unknown public servants conspired to defraud a consortium of 31 banks and financial institutions from which the company had availed loans totaling roughly Rs 9,280 crore.
The probe was launched on the basis of a complaint filed by Bank of Maharashtra in November 2025 after it suffered a loss of Rs 57.47 crores.
Later, several subsequent complaints from other banks, including Punjab National Bank and State Bank of India, were added to the same First Information Report, the Central Bureau of Investigation said.
Citing a forensic audit report by Grant Thornton dated May 1, 2020, the CBI alleged that 68% of wholesale loans (Rs 11,218.58 crores) were disbursed to "Potential Indirectly Linked Entities" (PILE), which subsequently routed the funds to related parties.
Approximately 25% of tracked funds were part of circular transactions that were eventually routed back to RCFL.
Loan proceeds were misappropriated in direct violation of Reserve Bank of India guidelines for NBFCs, which prohibit extending bank credit to subsidiaries or group entities, the CBI claimed.
The loan funds were disbursed to accounts maintained by RCFL in a private bank, and after pooling the funds from several public sector banks the funds were transferred to various entities which were either group companies or indirectly linked entities of the ADA Group, the CBI said.
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Seeking Jhunjhunwala's custody, prosecutor Jitendra Sharma submitted that he oversaw corporate finance of the ADA Group as its Managing Director, and thus played a pivotal role in the financial mismanagement.
Jhunjhunwala's lawyers Mudit Jain and Jasmin Purani submitted that he had been made a scapegoat.
Jhunjhunwala left the group in 2019 and had no access to any company documents or records thereafter, the defence said.
They also pointed out that so far his statement has been recorded for over 12 times in 28 days by three different agencies and he has cooperated with the investigation.
The court, after hearing both the sides, remanded him in CBI custody till June 12.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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