Former RCom Executive Accused of Loan Mismanagement
The Central Bureau of Investigation (CBI) has taken Amitabh Jhunjhunwala, a former senior executive of the Reliance Communications (RCom) Group, into custody concerning an alleged bank fraud case. Jhunjhunwala, who previously served as Group Managing Director, was arrested after being produced before a special court in Mumbai on June 1, 2026.
According to the CBI, Jhunjhunwala played a pivotal role in securing loans from various banks for the RCom Group. He was allegedly responsible for key functions including corporate finance, banking coordination, and the utilization of funds. The agency claims that the loan funds were mismanaged or improperly utilized by RCom Group officials, leading to significant financial losses for the lending institutions.
Details of the Alleged Fraud
The investigation stems from a complaint filed by the State Bank of India (SBI) against Reliance Communications Limited and Anil D. Ambani. SBI alleges a loss of Rs 2,929.05 crore. A consortium of 11 banks, led by SBI, sanctioned term loans to RCom, which subsequently failed to repay the amounts, causing their accounts to become non-performing assets. The collective losses for this consortium are estimated at Rs 6,015 crore.
The CBI's allegations further suggest that Jhunjhunwala acted under instructions from the promoters and directors of Reliance Communications Group companies. The total exposure across 17 public sector banks related to RCom is reported to be Rs 19,694.33 crore.
Previous Custody and Ongoing Investigations
Prior to his arrest by the CBI, Jhunjhunwala was in judicial custody in Tihar Jail, Delhi, in connection with a separate case being investigated by the Enforcement Directorate. After obtaining production warrants, he was medically examined at AIIMS, New Delhi, declared fit to travel, and subsequently brought to Mumbai for his formal arrest by the CBI.
He has since been remanded to judicial custody in Mumbai's Arthur Road Jail. The CBI is expected to seek his police custody on Tuesday to continue their investigation.
The agency has also registered six additional First Information Reports (FIRs) against RCom, RHFL, RCFL, and RTL, based on complaints from various public sector banks and LIC. These cases are currently under investigation and are being monitored by the Supreme Court. The CBI confirmed it filed its first chargesheet in the RCom case on May 29, 2026, naming 16 accused, including the company, five senior RCom executives, and ten bank officials.