Ex-Reliance Communications MD Jhunjhunwala Lodged in Arthur Road Jail

Mumbai: Former Reliance Communications Group managing director Amitabh Jhunjhunwala, arrested by the CBI in a multi-crore bank loan fraud case, has been lodged in Arthur Road Jail in Mumbai, officials said on Tuesday. A Mumbai court on Monday allowed the Central Bureau of Investigation (CBI) to arrest Jhunjhunwala, who is in judicial custody in New Delhi in a related money laundering case being probed by the Enforcement Directorate (ED).

Considering the late hour and the accused’s travel from Delhi’s Tihar Jail, the court sent him to judicial custody and the request for police custody was planned to be made later in the day, officials said.

Jhunjhunwala, group managing director of Anil Ambani-led Reliance Communications Group, looked after important functions like corporate finance, banking and fund utilization.

CBI alleged that the loan funds received from banks on his instructions were managed/used by other officials of the RCom group. The investigating agency said banks suffered unfair losses due to misuse of loan funds.

Last week, the investigation agency filed a criminal complaint in the case against 16 individuals/organizations. Jhunjhunwala’s name was not mentioned in the chargesheet filed before the special court but the investigation against him was ongoing.

The defendants named in the indictment included Reliance Communications, five senior executives of the company and 10 bank officials.

They have been charged with criminal conspiracy, cheating and embezzlement under the IPC and criminal misappropriation under the Prevention of Corruption Act, the CBI said in a press release.

The charge sheet relates to alleged misuse of term loan of Rs 1,200 crore approved by SBI, letter of credit facilities of Rs 500 crore approved by Bank of Maharashtra and letter of credit facilities of Rs 350 crore approved by Syndicate Bank, it said.