CBI Takes Action: Former Reliance Communications Chief Arrested Over Massive Loan Fraud

In a significant development, the CBI has arrested Amitabh Jhunjhunwala, the former Group Managing Director of Reliance Communications, over allegations of a massive loan fraud that resulted in a staggering loss of ₹2,929.05 crore to the State Bank of India. Already in judicial custody, Jhunjhunwala was taken to Mumbai for formal arrest following a court order. The investigation reveals his crucial role in managing corporate finance and coordinating loans, leading to wrongful losses for the banks involved. This case is part of a broader inquiry into financial misconduct linked to Reliance Communications, with the Supreme Court overseeing the proceedings.

By Narendra Chaudhary Jun 1, 2026, 21:12 IST

Former Reliance Communications Executive Arrested

New Delhi: On Monday, the Central Bureau of Investigation (CBI) apprehended Amitabh Jhunjhunwala, the former Group Managing Director of Reliance Communications, in relation to a significant loan fraud that allegedly resulted in a loss of ₹2,929.05 crore to the State Bank of India, according to officials.

Jhunjhunwala was already in judicial custody at Tihar Jail due to an ongoing investigation by the Enforcement Directorate. Following the issuance of production warrants by a special court in Mumbai, he was transported there by the CBI.

After being presented in court, the CBI executed his formal arrest.

The CBI spokesperson stated, "He was brought to Mumbai and presented before the court on June 1, 2026. Following this, the CBI officially arrested him, which was acknowledged by the court. Subsequently, he was remanded to judicial custody in the RCom case and transferred to Arthur Road Jail."

"His petition for police custody will be addressed tomorrow (Tuesday)," the spokesperson added.

Regarding his alleged involvement, the CBI indicated that Jhunjhunwala oversaw critical operations such as corporate finance and banking within Reliance Communications.

"He liaised with senior bank officials for loans and advances. Under his guidance, loan funds from banks were managed and allocated by other RCom officials. It is claimed that the misuse of these funds led to significant losses for the banks," the agency's spokesperson explained.

The CBI had previously filed an FIR against Reliance Communications Limited and businessman Anil Ambani, accusing them of causing a ₹2,929.05 crore loss to the State Bank of India, which was part of a consortium of 11 banks that provided term loans to the company.

"The consortium, led by the State Bank of India, collectively incurred a loss of ₹6,015 crore. The total exposure to RCom reached ₹19,694.33 crore, involving 17 public sector banks," the spokesperson noted.

Jhunjhunwala is alleged to have played a key role in securing loans from various banks that have since turned into non-performing assets due to the company's failure to repay, according to the statement.

"He was acting on instructions from the promoters and directors of the Reliance Communications Group companies," the spokesperson added.

Additionally, the CBI has initiated six more FIRs against RCom, Reliance Home Finance Ltd, Reliance Commercial Finance Limited, and RTL based on complaints from various public sector banks and LIC. The Supreme Court is overseeing the investigation into these matters.

The CBI had submitted its first chargesheet in the RCom case on May 29, 2026, naming 16 individuals, including the company, five senior RCom executives, and 10 bank officials.