CBI Arrests Former Executives of Reliance Finance in Major Fraud Case

Key Arrests in Reliance Finance Investigation

The Central Bureau of Investigation (CBI) has taken into custody Devang Mody, the former Director and CEO of Reliance Commercial Finance Limited (RCFL), along with Ravindra Sudhalkar, the former Executive Director and CEO of Reliance Home Finance Limited (RHFL). This action is part of an ongoing probe into the Reliance ADA Group's financial dealings. The investigation indicates that the actions of the accused led to a staggering loss of ₹4,097 crores for 13 Public Sector Banks (PSBs) in the RCFL case, while the RHFL case resulted in a loss of ₹3,526 crores for 10 PSBs.

Evidence suggests that Devang Mody, who held the CEO position at RCFL from April 2017 until December 2018, played a pivotal role in the company's operations. He sanctioned loans to intermediary and conduit firms, fully aware that these actions violated RBI regulations and the terms set for borrowing from PSBs.

Similarly, Ravindra Sudhalkar, who was the ED and CEO of RHFL from October 1, 2016, to March 31, 2022, was also a significant decision-maker in the company's operations. He too approved loans to intermediary and conduit companies, disregarding the company's lending policies and the guidelines established by the NHB/RBI.

The investigation has uncovered that both individuals misappropriated funds obtained by RCFL and RHFL, diverting them to various Reliance ADA Group companies, including Reliance Capital Ltd., Reliance Infrastructure Ltd., and Reliance Power Ltd. This misallocation resulted in a total wrongful loss of ₹7,623 crores to the lending banks, while simultaneously benefiting themselves and associated entities.

It is important to note that the CBI has filed seven FIRs against Reliance Communications Limited (RCom), RHFL, RCFL, and Reliance Telecom Limited (RTL) following complaints from several Public Sector Banks and LIC. These cases are currently under investigation, which is being overseen by the Hon'ble Supreme Court. To date, the CBI has arrested five individuals in connection with the Reliance ADA Group cases, including both Mody and Sudhalkar. The first chargesheet in the RCom case was filed by the CBI on May 29, 2026, naming 16 individuals, including the company itself, five senior RCom executives, and ten bank officials.