Court allows CBI to arrest former Reliance ADAG executive Jhunjhunwala in bank fraud case

A Mumbai court on Monday, June 1, 2026, allowed the Central Bureau of Investigation (CBI) to arrest Amitabh Jhunjhunwala, a former top executive of industrialist Anil Ambani-led Reliance Group, in a case related to alleged misuse of bank loans.

Mr. Jhunjhunwala was produced before special CBI judge JP Darekar on a production order from Tihar Central Jail in New Delhi, where he is under judicial custody in a related money laundering case being investigated by the Enforcement Directorate (ED).

Following his statement, the CBI, represented by Special Public Prosecutor (SPP) A Limosin, filed an application seeking remand and warrant to formally arrest the accused.

Lawyers Reeti Upadhyay and Mudit Jain, who appeared on behalf of Jhunjhunwala, argued that as per the production order passed by the Delhi court, the former executive of Anil Dhirubhai Ambani Group (Reliance ADAG) should be produced before the court on June 5.

The defense argued that it was illegal for him to appear in court before that date.

After hearing the arguments of both the parties, the Mumbai court allowed the CBI’s application to formally arrest the accused under the provisions of the law.

However, as the trial continued outside working hours, the CBI told the court that they would produce the accused on Tuesday after completion of arrest formalities.

Meanwhile, the court placed Jhunjhunwala in judicial custody, keeping in view the “odd situation” regarding the lateness of the hour and the accused’s traveling distance from Delhi.

Mr. Jhunjhunwala, group Managing Director of Reliance Communications group, was looking after important functions like corporate finance, banking, utilization of funds, among others.

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.

CBI filed a chargesheet in the case against 16 individuals/entities on Friday. 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 ten 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 chargesheet stated that it relates to the alleged misuse of ₹ 1,200 crore term loan approved by SBI, ₹ 500 crore letter of credit facilities approved by Bank of Maharashtra and ₹ 350 crore letter of credit facilities approved by Syndicate Bank.

The CBI said further investigations are being kept open to probe other loans approved by the consortium of banks and to ascertain the role of other conspirators involved in the alleged diversion and misappropriation of public funds.

The central agency registered the case on SBI’s complaint against Reliance Communications and Anil Ambani regarding the bank allegedly causing losses of ₹ 2,929.05.

“Rupee Term Loans” have been approved by a consortium of 11 banks led by SBI to Reliance Communications. According to the FIR, the total exposure amounted to ₹19,694.33 crore and involved 17 state-owned banks.