Mumbai: A special court on Wednesday remanded Amitabh Jhunjhunwala, former group managing director of the Anil Ambani-led Reliance Communications, to CBI custody till Friday in a multi-crore bank loan fraud allegedly involving Reliance Commercial Finance Limited. The loss caused to 13 public sector banks is to the extent of Rs 4,097 crore approximately, as alleged in the complaints.It was alleged that the company had originally availed credit facilities exceeding Rs 9,280 crore from 31 banks, financial institutions, and corporate bodies before the accounts were officially declared non-performing assets on March 25, 2020.The CBI, through special public prosecutor Jitendra Kumar Sharma, approached the court to secure the custody of Jhunjhunwala, who is currently lodged in Arthur Road Jail under judicial custody for a separate, but related matter. The CBI informed the court that the investigation is being closely monitored by the Supreme Court.Seeking Jhunjhunwala’s custody, the CBI submitted that during the course of investigation, his role and complicity have emerged. The CBI submitted that he was the managing director of ADA Group and was looking after corporate finance of the group, at the relevant point of time.“It has also come to fore that he was holding the authoritative position in the group and used to direct senior executives of Reliance ADA Group companies to sanction or approve loans to shell or paper companies of Reliance ADA Group or interlinked entities. Investigation has also disclosed that he was directing the CEOs, CFOS, CROs and directors to sanction general purpose corporate loans to shell or paper companies of Reliance ADA Group or interlinked entities, which were ultimately routed to the group companies of Reliance ADA. Those loans remained unpaid causing wrongful loss to lending banks,” the CBI said.The CBI further submitted that Jhunjhunwala was giving instructions via electronic messages to route the funds of Reliance Commercial Finance Limited and Reliance Capital Limited to other companies of the group which were in complete and repeated violations of sanction terms and conditions of the loans. “Hence, there are reasons to believe that Jhunjhunwala being the group MD and holding the entire financial management of the group, has rendered active participation in rotating and diverting the public money without any underlying genuine business, as it has been disclosed during investigation that the companies (shell or paper companies) of Reliance ADA Group or interlinked entities were neither having any fixed assets nor having any employees but loans of hundreds of crores of rupees were extended which remained unpaid causing wrongful loss to lending banks,” the CBI said.The CBI said that Jhunjhunwala’s custodial interrogation was necessary to uncover the full criminal conspiracy and identify the culprits, including complicit public servants, responsible for defrauding the banks. The CBI also wanted to confront him with co-accused and recovered electronic evidence, such as internal Reliance ADA Group communications. “Further, it is necessary to find out the ultimate beneficiaries of the defrauded loan amount, which is within the exclusive knowledge of… Jhunjhunwala,” the CBI said.
