The Central Bureau of Investigation (CBI) has formally arrested Amitabh Jhunjhunwala, the former Group Managing Director of Reliance Communications (RCom) Group, in Mumbai on June 1, 2026. The arrest is in connection with a substantial bank fraud case involving the company, where Jhunjhunwala is alleged to have played a pivotal role in securing loans from various banks.
Allegations Against Jhunjhunwala
According to the CBI, Jhunjhunwala was instrumental in coordinating with senior bank officials to obtain loans and advances for RCom. He allegedly controlled key functions within the group, including corporate finance, banking, and the utilization of funds. The agency claims that the loan funds received from banks were mismanaged or misused by RCom Group officials, resulting in significant wrongful losses for the lending institutions as the company failed to repay the amounts, leading accounts to turn into non-performing assets (NPAs).
Before his arrest by the CBI, Jhunjhunwala was already in judicial custody at Tihar Jail in Delhi, facing an investigation by the Enforcement Directorate. Following production warrants from a special court in Mumbai, he underwent a medical examination at AIIMS, New Delhi, where he was declared fit to travel. He was then brought to Mumbai, produced before the court, and subsequently arrested by the CBI. He has been remanded to judicial custody in Arthur Road Jail, with the CBI's plea for police custody expected to be heard on Tuesday.
The RCom Bank Fraud Case Details
The fraud case stems from a complaint filed by the State Bank of India (SBI) against Reliance Communications Limited and its promoter, Anil D. Ambani. The complaint alleges a loss of Rs 2,929.05 crore to SBI. A consortium of 11 banks, led by SBI, collectively sanctioned term loans to Reliance Communications Limited and allegedly suffered total losses amounting to Rs 6,015 crore.
The CBI's investigation indicates that the total exposure from 17 public sector banks towards RCom stood at Rs 19,694.33 crore. The agency has also registered six other First Information Reports (FIRs) against RCom and its subsidiaries, including Reliance Home Finance Limited (RHFL), Reliance Commercial Finance Limited (RCFL), and Reliance Telecom Limited (RTL), based on complaints from various public sector banks and the Life Insurance Corporation of India (LIC).
Ongoing Investigation and Chargesheet
The CBI had filed its first chargesheet in the RCom case on May 29, 2026. This chargesheet named 16 accused, including Reliance Communications Limited, five senior RCom executives (excluding Jhunjhunwala at that time), and ten bank officials. The agency has stated its commitment to conducting an expeditious and detailed investigation into all related cases, which are currently being monitored by the Supreme Court.