The Central Bureau of Investigation (CBI) has arrested two former executives of two Reliance ADAG companies in connection with ongoing corruption cases, the agency said on Monday.
The arrested executives have been identified as: Devang Modi, former MD and CEO of Reliance Commercial Finance Limited (RCFL), and Ravindra Sudalkar, former MD and CEO of Reliance Home Finance Limited (RHFL).
In the RCFL case, it lost, the agency said in a statement $Rs 4,097 crore was paid to 13 public sector banks while in the RHFL case, $A loss of Rs 3,526 crore was incurred by 10 public sector banks (PSBs).
“The investigation 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 company’s operations. He approved loans to intermediary and conduit companies despite being aware that such lending was inconsistent with RBI guidelines and sanctioning terms governing borrowing from PSBs,” the RBI statement said.
Ravindra Sudalkar, “served as the Executive Director and CEO of RHFL during the period from October 2016 to March 2022. He was one of the key decision makers responsible for managing the operations of Reliance Home Finance Limited (RHFL). He approved loans to brokerage and conduit companies despite such lending being in contravention of the company’s lending policies, NHB/RBI guidelines and conditions governing borrowing from PSBs,” the CBI statement said.
The agency also said that its investigation revealed that “the accused persons transferred funds borrowed by RCFL and RHFL to Reliance ADA group companies, including Reliance Capital Ltd., Reliance Infrastructure Ltd. and Reliance Power Ltd., causing a combined wrongful loss of Rs 7,623 crore to the lending banks and corresponding wrongful gain to themselves and related entities.”
HT has reached out to the Reliance Group for comment. The story will be updated.
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